...Economic Issues Simulation Budget constraints increasingly determine the provision of health care services. One of the promises of cost-effectiveness analysis is that it can demonstrate how to maximize the health care benefits attainable within a specific budget.1,2 Despite this promise, cost-effectiveness analysis has been criticized for setting health care priorities in a way that violates people's values.3-5 For example, many people value equity in the distribution of health care resources, yet equity is not accounted for in cost-effectiveness analyses.6-13 A basic assumption of cost-effectiveness analysis is that one should always prefer a health care intervention that provides a population with more benefit per dollar than another intervention. However, sometimes budget constraints make it impossible to offer the most cost-effective intervention to everyone in the population, raising issues of equity.14 For example, suppose one has a fixed budget of $200,000 with which to screen a specific population for colon cancer. Test 1 costs $200,000 to offer to everyone in the population and prevents 1000 deaths from colon cancer. Test 2 costs $400,000 to offer to everyone and prevents 2200 deaths from colon cancer. Because of the budget, it is impossible to offer test 2 to everyone. However, it is possible to offer it to half the population, thereby exhausting the $200,000 budget and preventing 1100 deaths from colon cancer. Test 2 is more cost effective than test 1, because for...
Words: 996 - Pages: 4
...Economic Issues Simulation Understanding Economic Issues for HMO’s Castor Collins Health Plan is a regional Health Maintenance Organization that has been contracted to provide health care coverage for Constructit and E-Editors. Castor Collins has to expand the coverage for another employee group by the name of Dearden. It is Castor Collins Health Plan’s goal to provide the necessary coverage, and still make a profit. At the time of renewal, Dearden’s policy will need to be reviewed and modified to add coverage and update if indicated to be profitable. The management team responsible for this review and implementation of coverage consists of the CFO, the Chief Medical Officer, and the Executive Vice President of planning and development, and the Vice President of strategy and financial planning. Constructit The management team reviewed Constructit and its need for coverage. This company needs coverage for 1,000 employees and is willing to pay $4,000 in premium. The age group is 26-45 with 43% in a sedentary work style. The other 57% is active, either moderately or severe, in the workforce. The workforce under the age of 30 is 40%. The biggest obstacle for this group as there is a 39% obesity rate among the employees. The team reviewed both standard and enhanced policies for this group and decided that the customized policy best fits the need of Constructit. Under the Castor Enhanced minor policy, the basic needs of medical services under inpatient and hospital...
Words: 950 - Pages: 4
...Introduction This review paper shines a light on how vital the use of economic tools is in making managerial decisions as reflected in the simulation. Decision making process of management is described in different market structures. Just as it pertains to any for-profit business organization, the goal is to cut and maximize profits in each type of market structure. Based on the information provided in the simulation, Quasar Computers were involved in an extensive research in developing a pioneer product “the Optical Notebook.” In 2003, the company launched the first all-optical notebook computer and branded it the “Neutron”. This product is described as an energy saving optical technology with its rechargeable batteries capable of lasting up to three days; hence, transcending it into a leading technological product in its unique class. With the assistance of senior executives in the company, the decisions on operational and business strategies relative to a variety of market conditions are taken and discussed. Monopoly Quasar emerged as the only player in the market for its unique optical notebook computer; therefore, establishing a monopoly market structure. Within this monopolist market structure, maximizing profit tends to occur at the point where marginal cost equals marginal revenue based on the result shown by toggling the demand curve. In the initial scenario, it was presented that Quasar had the patent rights on all-optical technology for three years from the launch...
Words: 1205 - Pages: 5
...Health Care Economics Issues HMO Simulation Name University of Phoenix Economics: The Financing of Health Care HCS440 instructor date Health Care Economics Issues HMO Simulation Castor Collins is a health insurance company that offers health maintenance organization (HMO) to organizations. This health insurance company was founded in 1999 in Pantome. Two organizations are trying to seek coverage for their employees and have chosen to see what Castor Collins has to offer them. The two companies are Constructit and E-editor that are seeking policies for their employees. Each one of these companies has provided the demographics, health risks and maximum premiums they are willing to pay. The insurance company has three different plans they have to offer for these two companies .Castor Collins will review the company’s information and decided which plan is best for which company to see if they will be able to meet the companies’ needs. Castor Collins will also make sure their financial liability will not be too high. The three insurance plans Castor Collins has to offer is castor standard, castor enhanced, and castor enhanced minor. The castor plan and the castor enhanced plan offer the same type of services with little price different. The biggest difference between these two plans is the castor standard plan does not cover pre-existing conditions and the castor enhanced plan does cover pre-existing conditions. The castor enhanced minor plan is different from...
Words: 860 - Pages: 4
...HCS 440 Economic Issues Simulation University of Phoenix, Axia Date: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Instructor: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Economic Issues Simulation: Constructit Constructit is a company that currently does not have any employer paid health insurance. This company consists of 1,000 people and they are willing to pay up to $4,000 per person for their annual premium. The group of people is compromised of 550 men and 450 women ranging in age from 26 to 45 years old. Fifty-seven percent of the workers range from high activity to moderate activity level while the remaining forty-three percent are in predominately sedentary positions. One factor to consider when determining which type of insurance to offer the group is the amount of health risk factors that affect the entire group of people. Thirty-eight percent of the workers have been determined to have no major risk factors at all. However; almost eighteen percent of the workers are smokers and 13.50 percent of them suffer from some type of respiratory disease or illness. One of the biggest risk factors affecting this group of people is obesity. Obesity affects thirty-nine percent of these workers which increases the risk for obesity related diseases and illnesses. These can include heart disease, hypertension, hyperlipidemia, and diabetes. This will increase the utilization of many healthcare services including prescription medications, diagnostic imaging and services...
Words: 1125 - Pages: 5
...Economic Issues Simulation Mary Mulanax HCS/440 November 14, 2011 University of Phoenix Richard Harley Smith Economic Issues Simulation I am Mary Mulanax I am the Vice President, Strategy and Financial Planning at Castor Collins. My duties include pricing plans and setting insurance premiums for our potential clients. Castor Collins was approached by two companies looking for employer insurance and both companies have a set rate their employees are able to pay for premiums since both groups will have to pay for his or her own insurance (Axia College, 2006). The first company is Constructit that consist of 1,000 people and E-Editors that consist of 1,600 people. It is up to my team to come up with a plan the meets Constructit $4,000 max on premium and E-editors max of $4,500 premium(Axia College, 2006). Our task is to keep revenue maximized and risk to a minimum by choosing one of our three plans, which are Castor Standard, Castor Enhanced and our customized plan called Castor Enhanced Minor to suit Constructit the company I have chosen. Demographics of Constructit Constructit consist of 550 men between the ages of 26 to 45 and 450 women between the ages of 26 to 42. At Constructit 32% of the workforce’s duties involve excessive physical activities. This can cause some health risk with these employees. Whereas 25% of the workforce’s duties involve modest physical activities and the remaining 43% of the workforce’s duties involve inactive activities (Axia College, 2006)...
Words: 1176 - Pages: 5
...Economic Issues Simulation Paper HCS/440 University of Phoenix Individuals are encouraged to get insured, which serves as their proactive assurance of the possible risks that they may face in the future. By getting insurance, the person is able to minimize these risks. For instance, one may opt to buy insurance in order to have a fall back in case of a large loss or casualty, thus they can still be secure of a regular premium. Quite ironically, insurance has been one of the profit avenues of some companies. Profit can be gained in the insurance business because gaining the premium from the probability of a certain loss will still have a higher possibility of the same event to reoccur. Castor Collins Health Plans The main idea of insurance is letting the consumers or buyers give up a part of their money on a regular basis as their way of preparing for probable risks or losses. The clients of Castor Collins can choose between two plans of the company. The Standard plan will not cover the previous conditions, while the Castor Enhanced Plans can be used to cover up for the prior conditions of the client. Recently though, with the new Chief Financial Officer of the company, Helen Feuerman, the insurance company has come up with a better strategy that can provide them with greater profits. This is called the Castor Enhanced Minor. This new program basically eliminated all the company services that have a high...
Words: 1552 - Pages: 7
...Applied mathematics in Engineering, Management and Technology 2 (2) 2014:466-475 www.amiemt-journal.com Using a combined method of hierarchical analysis and Monte Carlo simulation in order to identify and prioritize the target market selection criteria (Case study: Food distribution companies of Mashhad-Iran) Amir kariznoee Ph.D. student of Industrial Management,University of Mazandaran ,Iran (Corresponding Author's E-mail: Amir.kariznoee@yahoo.com) Monireh Bijandi Graduate of Accounting in Ferdowsi University of Mashhad,Iran Mahdi Ghayur Maddah Student of Public Management in Ferdowsi University of Mashhad,Iran Vajihe Mogharabi M.A. Student of Information Technology Management, Shahid beheshti University,Tehran,Iran Abstract The aim of this study is to identify and prioritize the key factors in selecting a target market in the food industry. In order to determine the components and subcomponents of this study, we have used previous researches in this area. In order to match these factors with the food industry situation and create a hierarchical structure, we have obtained the opinions of 323 experts about affecting factors on choosing a market in this industry with the use of questionnaire. Then, using a combination of hierarchal analysis process and Monte Carlo simulation and cooperation with 10 senior executives of distribution companies, the weight of each component and sub-component was determined. In general, four components and ten sub-components were...
Words: 3589 - Pages: 15
...This report provides an in-depth analysis of the two Everest Simulations conducted by Group 10 of MGMT1001 Thursday Tutorial. This task required students to form teams consisting of five to six members whose goals were to summit Mount Everest. While it provided us with a rich experience in team dynamics and collaboration, it also enabled us to explore key managerial concepts taught in the course, consisting of: • Communication • Groups and Teams • Leadership In this report, we examine the effectiveness of Face to Face Communication (FTFC) versus Computer Mediated Communication (CMC), and the problems encountered through the utilisation of the virtual medium including efficiency of the feedback system, loss of personal focus and other emergent issues. It includes personal reflections on attitudes and perceptions, as well as group performance and strategies adopted in the second Simulation in order to create a more positive team experience. Theories which relate to interpersonal communication have also been integrated in the report to illustrate its relation to certain situations encountered during the Simulation. Additionally, we provide a multifaceted analysis on the notion of team cohesiveness and how it attributes to better performance outcomes. An overview on the different intragroup conflicts encountered in the Simulation has been included, examining the positive and negative impact that conflict had on team experience and performance, and how mutual agreements were reached...
Words: 287 - Pages: 2
...is a computer necessary in conducting a realworld simulation? Answer It is important because there are many different types of outcomes that comes in with simulation. Computers are used in daily life activities and it is necessary. 14-11 What is operational gaming? What is systems simulation? Give examples of how each may be applied. Answer Operational gaming is the use of simulation in competitive situations such as military games and business or management. System simulation ls that deal with the dynamics of large organizational or governmental systems. Validation The process of comparing a model to the real system that it represents to make sure that it is accurate. 14-17 (a) Resimulate the number of stockouts incurred over a 20-week period (assuming Higgins maintains a constant supply of 8 heaters). (b) Conduct this 20-week simulation two more times and compare your answers with those in part (a). Did they change significantly? Why or why not? (c) What is the new expected number of sales per week? Answer A. The number of stockouts incurred over a 20 week period is HOT WATER NUMBER OF HEATER SALES WEEKS THIS PER WEEK NUMBER WAS SOLD 3 2 4 9 5 10 6 15 7 25 8 12 9 12 10 10 B, Two more times would give us the value of a multiplied by 2. c. 25 14-18 A. 15 days of barge uploadings and average number of barges delayed B, They both are probabilistic simulations. Chapter 5 HW 5-14 Using MAD, determine whether...
Words: 648 - Pages: 3
...Initial operations strategy Prior to the commencement of the simulation, we examined the 50 days of historical data to glean as much information as we could about the operations. We performed some analysis in Excel and created a dashboard to illustrate various data. Specifically, we regressed the prior 50 days of jobs accepted to forecast demand over the next 2 - 3 months within a 95% confidence interval. The yellow and grey lines represent the maximum and minimum variability, respectively, based on two standard deviations (95%). Exhibit 1: Forecasted and actual demand by Day 50 and Day 270 Our two primary goals at the beginning of the simulation were as follows: 1) Eliminate bottlenecks and increase capacity in order to meet forecasted demand 2) Decrease lead time to 0.25 days in order to satisfy Contract 2 and maximize revenue In order to achieve these goals, we would need to know the capacity and throughput time of the entire system. We used the time required by each machine to process a lot to calculate capacity per station and then capacity of the entire production line (380 kits/day or 6 orders/day). In Exhibit 2 we can observe that the capacity of the production line is given by the station that produces the least number of units per day. Exhibit 2: Capacity of the production line The Decisions We decided to work with the maximum variability of demand because there was a penalty for late jobs and because there was no revenue for orders that took more than “x”...
Words: 765 - Pages: 4
...Monte Carlo Statistical Analysis Name Course Instructor Date The Monte Carlo method is a mathematical method used for problem solving through the generation of random numbers and then observing a fraction of these numbers and the properties they obey. It is useful in obtaining numerical solutions to problems that are too complicated for analytical solutions. It is a form of probability used to understand the impact of risk and uncertainty in various areas such as financial and cost forecasting. It involves computation of the likelihood of given events occurring or not occurring, without taking into account the interaction of the elements involved in influencing the occurrence. The mathematical method was invented by Stanislaw Ulam in 1946 and named by Nicholas Metropolis after a classy gambling resort in Monaco, where a relative of Ulam frequently gambled [ (Fishman, 1996) ]. Concepts of the Monte Carlo method Uncertainty Being a forecasting model, there are assumptions that need to be made due to the uncertainty of various factors. One therefore needs to be able to make estimations of the expected results as they cannot predict with certainty what the end value will be. Important factors such as historical data and past experiences in the field can be helpful in making an accurate estimate. Estimation In some cases, estimation may be possible but in others it is not. In situations where estimation is possible, it is wise to use a wide range of possible values instead...
Words: 2486 - Pages: 10
...NS2 soft solution: Ns2 soft solution is a software development based company which contain innovative and expertise to facilitate complex projects in an efficient way. We offer various broad solution projects for researchers and students to increase demands among other centers and customer centric solution with high standard. We offer various projects under NS2 simulation based on IEEE papers and non IEEE papers. We deploy various NS2 projects as a virtual one in real time application. Ns2 soft solution is a highly experienced team member of developer professionals providing a wide range of complex projects and network protocol simulation. Our motto: • Advance technology enhancement. • Make everything possible. • Provide service quality for every commitment. Basic aims of Ns2 soft solution are: • Providing guidance for students to select the efficient project based on student interest which ensures a success in their projects. • We train and make students to learn all the concepts from basic to advance such that students can get a clear idea about the project what they do. • Based on...
Words: 607 - Pages: 3
...The Mikes Bikes simulation is an exciting and interesting way to gain critical insights into the development of a business. By operating a simulated bicycle manufacturing corporation over a period of ten years was an opportunity to gain insights on a real entrepreneurial experience. It allowed us to expand on the ideas taught in class such as creating a business strategy and using tools like SWOT and Porter’s five forces. We had many assumptions initially regarding the procedures but gradually we could learn the basics by facing enough challenges and by trial and error method. These skills cannot be learned by the usual form of lecturing. Considering our team, this was our first comprehensive exposure to real business environment. Each...
Words: 566 - Pages: 3
...Economic Issues Simulation Paper/ Constructit Ruby Medders HCS/440 March 16, 2015 Lori Geddes Economic Issues Simulation Paper/ Constructit The research was done on determining which insurance policy would be better for a striving company. My decision was to research Constructit; I will give you my reasons behind choosing this company, benefits that will help the employees of this company and why I think this was the better choice for this company. (Getzen, 2013) Profile The companies name is Constructit, it employees 1000 people. The demographics for this company is ages 26-45 years old, there are 406 people between the ages of 26-30, 314 people between the ages of 31-35, and 82 people between the ages of 41-45. The total count for this company is 550 men and 450 women and 60% of the people are married. The physical condition of the people who work for Constructit shows that 32 % of the employees are involved in great physical activity, 25% is involved in a moderate physical activity, and the rest of the employees which is 43% are involved in sedentary activities. The health risk of the employee has been rated moderately high for health risk in this group. The good part of the research showed that 35% of the group has no major health risk, although 18% of the people who work for this company are smokers. (Getzen, 2013) According to report some of the major causes of work absenteeism at Constructit are injuries, respiratory system diseases, digestive disorders...
Words: 1423 - Pages: 6
