Illustratethe hospital-versus-hospital trade-off using an isoquant/isocost graph and explaining the economic principles involved in obtaining an optimal situation. In what important respects does this issue differ from the issue in the previous question?
4. Hospital versus hospital. Because of the piecemeal structure that theNHS inherited it has tended to provide healthcare in an inefficient way. Hospitals and other facilities are not only old and in need of repair, but in many cases small, separated geographically, and duplicating facilities. Division of labour is often non optimal.In Birmingham, for example, there is an accident and emergency unit at Selly Oak Hospital, whereas the brain and heart specialists who might need to perform urgent operations on those involved in car crashes or suffering heart attacks are at the neighboring Queen Elizabeth Hospital. Thus the issue often arises whether it is preferable to concentrate facilities and staff by building a new and larger hospital to replace a number of older facilities.
Q.
Illustratethe hospital-versus-hospital trade-off using an isoquant/isocost graph and explaining the economic principles involved in obtaining an optimal situation. In what important respects does this issue differ from the issue in the previous question?
Step by step
Solved in 5 steps with 3 images
