...FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS 2015/2016 ABBE 3173 CONSUMER ECONOMICS GROUP WRITTEN ASSIGNMENT Topic: SKYROCKETING HEALTH CARE COSTS |Name |Student ID |Signature | |Gan Shid Ney |14WBD03548 | | |Goh Zi Yuan | | | |Yeng Kah Yi | | | | | | | Program : Diploma In Business Economic Tutorial Group : 1 Assignment Group : 2 | |Assessment |Marks Allocation |Comments | | | | | | | | | | | |1. |Introduction |5 marks | | |2. |Content...
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...unsuccessful because of their ineffectiveness, severe side effects and lack of credibility among consumers. At this juncture, Barbara Printup, the Senior Marketing Director of Cambridge Sciences Pharmaceuticals (CSP) wants to introduce CSP’s newest revolutionary prescription drug, Metabical. It is the only FDA approved prescription drug for overweight people, which has minimal side effects and long term benefits. PURCHASING DECISION MAKING PROCESS (Q1) The communication strategy of Metabical targets both the health care provider and the consumer. Depending on the initiators there are two different purchase decision processes in the purchase of Metabical for the overweight problem. 1. For Customer: a. Problem identification: The various health awareness programs, BMI table etc help a health conscious or beauty conscious individual to identify the overweight problem. b. Information search: Once the problem is identified the individual decides on the course of action. He/She may decide to either ignore the problem or work on it. Metabical is interested in the group of individuals who are ready to take action and reduce weight. These individuals are prospective consumers; they look out for ways to reduce weight. The advertisements, campaign, pamphlets etc are some of the means used by companies like Metabical to reach these consumers with information. c. Evaluation: The prospective consumer evaluates each of the available options based on various criteria. In our case, the criteria...
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...Healthcare and Economics Charde Allen HCS 440 Healthcare economics is the process of basically studying the way healthcare functions as well as health related behaviors. Throughout time healthcare economics have sufficiently changed due to technology and more advanced ways of research. As time passes healthcare economics have become more and more vital with change for future effort. Consumers play a role in the change due to findings and new diagnosis. The value of health care in the society is very important to the consumer because the determining factor of the future of healthcare rest upon the costs, treatments, and advancements within healthcare. All this tied together is the ground function of economics in the healthcare field. The importance of knowing terms and what they are in healthcare economics are also vital to understanding the importance of it. In order for healthcare organizations to function, they have to know the meaning of supply and demand. This is when the relationship between two factors determines the price. The flu shot would be an example of supply and demand. The flu shot is popular and is used every year around a specific time. They know the demand for it is huge so the supply would have to be bigger. Another important term would be microeconomics. This is focusing on price aspect of the economy while paying attention to the price costs of a firm. This basically the decision making process. This determines the choices that are picked from a buy...
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...What Do Americans Want Out of Healthcare? Team 2: Michael Drescher, Tim Geiger, Heather O’Dell, Carla Raynor Part A: Consumer Preferences and Desires Overview We began with online research, surveying a group of healthcare consumers, in an effort to better understand what Americans want out of their healthcare system. Our aims were to determine what these consumer’s valued, their product and service preferences, consumption patterns, and their capacity and willingness to purchase healthcare. To facilitate this process we used Survey Monkey. Demographics of respondents We garnered responses from 80 individuals with the following characteristics: * * 65% of respondents are age 30 – 49 * Nearly all respondents are married and work full-time * Half of respondents combined annual household income in 2014 of $150,000 or more; 32% have incomes between $75,000 - $150,000 * 3 of 4 respondents were female - consistent with fact that women make most healthcare purchasing decisions for their families * 36.25% of respondents have a graduate degree; 26.25% have a bachelor degree & 26.25% attended some college but do not have a degree * 70% pay for healthcare via employer-sponsored insurance; 17% have individual/family plans * 66% share healthcare purchasing decisions with others; 1 in 3 is the sole decision maker Summary of Findings Consumption of heathcare services: Two thirds of respondents receive only an annual exam...
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...Institute of Economic Affairs Essay Competition Entry “Because of market failure and to prevent inequality, the government should finance and provide all healthcare.” Given this common view, whilst making some reference to methods of providing and financing healthcare in other European countries, discuss whether government finance and provision of healthcare is likely to maximise welfare? Healthcare is categorised as a merit good as consuming it provides benefits to society and to the individual consumer. For instance, immunisation against a contagious disease gives us protection and results in a private benefit as well as an external one, to those who are protected from catching the disease from those who are inoculated. However, few would want inoculation only to protect others. Therefore, the demand for healthcare will be less than the socially efficient quantity. Having great advances in new technologies, treatments and drugs improves our health service’s ability to supply, as well as encouraging demand to such an extent that demand substantially exceeds supply. Unfortunately, this creates long waiting lists and therefore a scarcity of beds available for treatment. If we privatised the NHS, it would allow prices to increase to show how much it really costs to supply. But obviously, this would be very controversial and cause immigration rates to drop. This could be seen as a bad thing for some, due to the fact that many are very productive and willing to work for...
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...BEO2401: Risk Management and Insurance Major Assignment A historical analysis of health insurance in Australia Due Date: 22/5/13 Class: Wednesday 11pm tute Jeremy Fung 3897865 Kwin Trieu 3795138 Tamimuddin Saadzadah 3854247 Zaker Hussaini 3887002 Executive Summary The aim of this report is to analysis and review the Australian Health Care System, We have had a look at the history of the healthcare system in Australia and how it started out in 1901 after the formation of the commonwealth government and the Constitution and the power sharing of the responsibilities and control of the health sector between the federal and state government. The report also analyses the dual private and public health care system, which is the Medicare and the Private Health Insurance (PHI) options for Australian Citizen. The other are that we have reviewed is the legislations related to the health Insurance sector and why is the government so keen in keeping the Private Health Insurance capacity high and what are the benefits of the PHI for the government and the health industry finance. Table of Contents Introduction 1 Australian Health Care System 2 1.1Health Insurance (History) AND Recent Changes in Private Health Insurance 2 1.2 Medicare and the Decline of Private Health Insurance (PHI) Challenge for the Government 3 1.3The role of Private Health Insurance in Australian Healthcare...
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...1949, this paper presents statistical demand functions for health care. It applies the demand functions to explain the rapid increase in health care demand and the resulting rapid increase in price when supply failed to increase. The failure in increase in supply was traced to the system of public supply of healthcare in China. The reform experience of Suqian city in the privatization of healthcare is reported to demonstrate the positive effect of privatization on supply. The government’s health care program for the urban and rural population is described and an evaluation of it is provided. Outline 1. Introduction 2. Changes in Health Care Institutions 3. Demand Functions for Health Care 4 Supply for Health Care: Public or Private? 5. Government’s Program for Health Care 6. Evaluation of the Current Health Care System 7. Conclusion 1. Introduction With a population of over 1.3 billion China has received much attention, including its spectacular economic development since 1978 and the accompanied deterioration of health care for a substantial segment of its large rural population. Section 2 of this paper recounts the success of the PRC in improving the health conditions of its population from 1949 to 1980 and describes the changes of the public heath care system after 1980. In section 3, statistical demand equations for health care are estimated. Using only annual time-series data from 1995 to 2003 I have estimated an income elasticity of somewhat above unity and...
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...RUNNING HEAD: Week 6 Assignment #2 Week 6 Assignment #2 Strayer University Online November 13, 2014 Reforms for slowing the growth in health care spending and increasing the value of care have largely focused on insurance-based solutions. Consumer-driven health care represents the most recent example of this approach. However, much of the growth in health care spending over the past twenty years is linked to modifiable population risk factors such as obesity and stress. Rising disease prevalence and new medical treatments account for nearly two-thirds of the rise in spending. To be effective, reforms should focus on health promotion, public health interventions, and the cost-effective use of medical care. Disease prevention/health promotion approaches are key to slowing the rise in health care spending (Thorpe, Kenneth 2014). Over the past five years the cost of health insurance has risen 54 percent. This persistent rise has recently been attributed to the low out-of-pocket costs paid by consumers. Being oblivious to not knowing the full costs associated with health care, consumers demand more and “overuse” it (moral hazard). The growth in spending has also been linked to the rising use of prescription drugs and new medical innovations and treatments. Many others believe the rise can be traced to the lack of competition in the health care marketplace and have proposed new approaches for health plans to compete on price and outcomes. Economists thinking about...
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...THE TUCK SCHOOL AT DARTMOUTH MinuteClinic Bringing Change to Healthcare Delivery Peter Albro, Bill Aull, Ryan Fitzgerald, John Goldsmith, Tom Harris, Jon Mohraz 11/14/2008 Introduction In 1999, consumers of the US healthcare industry had a myriad of frustrations to choose from when seeking medical assistance: lack of convenience, no focus on customer service, limitations from insurance providers, billing inefficiency and confusion, and very opaque pricing. One grumbler, Steve Pontius, had an epiphany during an all too common experience when seeking medical coverage for his kids. After waiting for three hours at an urgent care clinic for what he thought was an ear infection, the physician diagnosed in three minutes what Pontius had predicted. Additionally, only after the visit to the doctor had he figured out that his insurance company did not cover treatment at this particular clinic, so Pontius would have to pay hundreds of dollars out of his own pocket to pay for the visit with the doctor.1 Sensing a business opportunity, Pontius, along with Rick Krieger and Douglas Smith, partnered to start MinuteClinic, the retail medical treatment clinic that is widely regarded as the beginning of the convenient care clinic (CCC) movement. Also known as retail based clinics, these facilities are small medical operations located within a larger retail operation such as Target or CVS. They offer a limited scope of medical services and are primarily characterized by...
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...Contents Introduction Page 3 Risk Scenario Related to Patient Care and Safety Page 5 Risk Scenario Related to the Physical Plant Page 9 Risk Scenario Related to Staffing Page 13 Best Practices in 4 Hospitals Page 15 Tenet Healthcare Page 16 Cleveland Clinic Stroke Improvement Plan Page 17 Conclusion Page 18 References Page 19 Introduction The issue of risk scenario carries immense importance for most of the hospitals that are part of the healthcare setting. However, there is not only one scenario that can affect the hospitals but there are several scenarios that can create an impact on the functions of the hospital. There are three scenarios that would be highlighted in the current topic. These three scenarios have a tendency to put a hospital at risk for financial stability. The first scenario that can produce a negative impact on the hospital risk is related to patient care and safety. The second scenario is related to the physical plant. The third and last scenario is related to staffing. The role of HIM practitioner in this regard would be very important. They would serve as a clinical quality assessment resource and as a team member to perform their tasks related to healthcare work. Therefore, all the issues related to three scenarios will be discussed in detail. The impetus for quality improvement has been driven in recent years by three main factors: 1. The amount of money that the US spends on healthcare per capita and as a percent of...
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...of money, income and production, and of taxes and government costs. “Economists seek to measure well-being, to learn how well-being may increase over time, and to evaluate the well-being of the rich and the poor. The most famous book in economics is the Inquiry into the Nature and Causes of The Wealth of Nations written by Adam Smith, and published in 1776 in Scotland. ("What is economics,”) With healthcare increasing in the country and insurance agencies providing consumers with the proper coverage for care these conditions are becoming a stress. But within this tension agencies are finding ways to merge and accommodate all aspects of consumers need financially and providing the care needed. According to the “Competitive Effects Analyses of Hospital Mergers” over the past decade, there have been more than 500 hospital transactions and realignment is expected to continue in 2014 and beyond. (Guerin- Calvert, 2014) Economically to control the flow, smaller independent hospitals are being advised to affiliate themselves with larger facilities to better contain their businesses as well as their patients. Innermost concern that patients have is the cost of coverage for the care that will be provided to them. And the trends in network to diminish a patient and their finances benefits are designed with lower premiums and out of pocket costs such as deductibles and copays. But, within this plan a patient has fewer providers to choose from. Another trend is risk based contracting...
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...macroeconomic conditions involves analyzing several indicators of the macroeconomic conditions in an economy, such as interest rates, income, and other indicators such as CPI, inventory levels, wage rates, consumer confidence, etc. This report will analyze a few of these indicators explaining the expected short impact on firms in the healthcare and automobile industries in terms of operating costs and product sales. There are a large number of variables or characteristics used to gauge the health of an economy, with four of them usually referred to as the key macroeconomic variables: aggregate output or income, the unemployment rate, the inflation rate, and the interest rate. There are, however, numerous additional measures or variables that are collected and used to understand the behavior of an economy. In the United States, for example, additional measures include: the index of leading economic indicators (which gives an idea where the economy is headed in the near future); retail sales (which indicate the strength of consumer demand in the economy); factory orders, especially for big ticket items (which indicate the future growth in output, since the orders will have to be filled); new automobile (robust increase in new automobiles are usually taken as a sign of good growth in the future); the consumer confidence index (which indicates how likely consumers are to make favorable decisions to buy both durable and nondurable goods, services, and homes). Other variables tracked are...
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...1.0 Executive Summary All in One Family Healthcare will provide the best care to every patient every day, at affordable pricing and in a family oriented environment. All in One Family Healthcare’s objectives include increasing consumer awareness of the importance of healthcare, making a profit within the first two or three years of operation, and franchising the company within seven years of operation. All-In-One Family Healthcare is a medical clinic that provides five services in one convenient location. Our medical division tends to basic healthcare needs such as annual check ups, physicals, minor blood work and common ailments. Other divisions within the clinic include pharmacy, optometry and dental services. All in One development will include the franchising of the company resulting in more All in One’s in North Carolina and eventually taking our business nationwide. Ultimately All in One plans to have locations in all major cities and operate as one of the nation’s most profitable and recognized health care facilities. All in One FHC will be open Monday-Friday from the hours of 9:00 a.m. to 5:00 p.m. The pharmacy department will remain open until 2:00 a.m. All in One will be closed on holidays such as Christmas, New Year, MLK Day, Memorial Day, etc. All in One Family Healthcare will have a simple management strategy. Since this is an LLC, the company will be run by the various owners and orders shall follow down the chain of command outlined in this section of the...
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...leaving my job in order run my own business becomes an implicit fixed cost for the first year of running my business giving me a total of 41,000 total fixed costs. In regards to pricing my cookbooks the retail price for the cookbooks will be at $30.00 and the average price of the cookbook will be $20.00. The change in the difference of the retail price to the average price is my marginal price. My marginal price is ten dollars. In other words, marginal profit = selling price ($30) – total variable cost of one unit (average of $20). In order to figure my demand curve for the month and assume that I have 40,000 cookbooks in inventory I would begin with Q being the quantity of cookbooks sold per month and P being the retail price of the cookbooks. The equation is Q = 40,000- 500P. I will plug in the price for $20, $30, and $35. For example, Q = 40,000-500(20) =10,000 cookbooks demanded at the price of $20.00. When figuring the demand at the cost of $30 my equation is Q = 40,000 – 500(30) = 25,000 cookbooks demanded. Lastly, the Q...
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...Healthcare Spending HCS/440 Healthcare Spending United States healthcare spending exceeds healthcare spending in any other country in the world. These increasingly high figures of healthcare spending cost are influenced by several different reasons. An aging population, illegal immigration, and technology advancements are some of the few influences on rising healthcare costs in America. It is imperative that health care costs are managed and soon because the government is finding it quite difficult to sustain everyone’s needs. In addition, healthcare reforms must be made to lessen healthcare costs before the quality of healthcare reduce in a drastic way. Healthcare spending has been on a continuous incline in America throughout the years. According to Center for Medicaid and Medicare Services, in the year of 2008 health care cost rose to $2.3 trillion in the United States; this was 4.4% higher than 2007 costs. Healthcare costs are averaging a little over %16 of the entire Gross Domestic Product (GDP). In 2008 Medicare spending increased 8.6% and Medicaid spending increased 4.7% in the same year. In addition, hospital stays physician rates, clinical visits, and prescription medications increased as well. 31% of a $1.6 trillion healthcare cost has been designated strictly for hospital stay care. Clinical and physician services are accountable for about 22% however, proposals from physicians account for a much vaster percentage of health care costs. Prescription medications...
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