following figure represents a hospital facing both private and Medicare ients. Please use the graph to answer the following questions. pital ment 5) 0 A B Patients (Hospital Admissions) A. If Medicare decides to cut the DRG price, what will be the effect on the number of private and Medicare patients served by the hospital. Please draw the new demand curves and label the new number of patients in the graph above and discuss the effect briefly. B. What is the concept of cost-shifting? What does the above analysis tell you about cost-shifting?

ENGR.ECONOMIC ANALYSIS
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Page 11 of 11
1707 words
KX Zix Accessibility: Investigate
10. Cost Shifting
The following figure represents a hospital facing both private and Medicare
patients. Please use the graph to answer the following questions.
Hospital
Payment
($)
0
B
Patients
(Hospital Admissions)
A. If Medicare decides to cut the DRG price, what will be the effect on
the number of private and Medicare patients served by the hospital.
Please draw the new demand curves and label the new number of
patients in the graph above and discuss the effect briefly.
B. What is the concept of cost-shifting? What does the above analysis
tell you about cost-shifting?
Display Settings Focus
+ 1009
Transcribed Image Text:Page 11 of 11 1707 words KX Zix Accessibility: Investigate 10. Cost Shifting The following figure represents a hospital facing both private and Medicare patients. Please use the graph to answer the following questions. Hospital Payment ($) 0 B Patients (Hospital Admissions) A. If Medicare decides to cut the DRG price, what will be the effect on the number of private and Medicare patients served by the hospital. Please draw the new demand curves and label the new number of patients in the graph above and discuss the effect briefly. B. What is the concept of cost-shifting? What does the above analysis tell you about cost-shifting? Display Settings Focus + 1009
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