The major criticismsof profit-oriented hospitals.
Explanation of Solution
With an increasing competition in the field of medical care services during 1980’s, a quality enhancement was much needed over cost efficiencies.This has been instrumental in creating an intense race among service providers of medical care.
However, the continued competition posted a need for quality enhancement as well as cost efficiencies during the 1990’s. The changes in the medical care landscape that had begun in the previous decadehave made hospitals focus more on maintain competitiveness while earning a profit.
There are a number of criticisms channeled towards hospitals that operate with an intention of earning profits. The corporate mindset of hospitals emphasizing on profit earnings have led them to leverage themselves with debt.
In other words, in leveling up the scale of operations, hospitals have sought after the assistance of debt. The creation of multiple hospital chains is also being criticized in this relation.
Also, if the hospitals are focused on earning profits, then responsibilities will be evaded and patients’ care will be neglected. It will lead to over-exploitation of patients who are in dire need of treatment.
A patient coming in for a simple treatment of a disease might be admitted for several days in ICU to earn profits. This is the reason hospitals should not put earning profits as their top agenda.
Further, hospital administrators earning exorbitant salaries are being heavily criticized. This posts a question as to whether the medical industry will unnecessarily focus on earning profits and serving individual interests of officials involved.
It is rather preferred to focus on technological enhancements that shall provide the patients with better treatment and care.
Want to see more full solutions like this?
Chapter 10 Solutions
EBK HEALTH ECONOMICS AND POLICY
- answer both question in the picture below swteo by step and give right answer please and explainarrow_forwardnot use ai pleasearrow_forwardA linear programming computer package is needed. As part of the settlement for a class action lawsuit, Hoxworth Corporation must provide sufficient cash to make the following annual payments (in thousands of dollars). 6 Year 1 23. 4 Payment 160 185 210 255 285 430 The annual payments must be made at the beginning of each year. The judge will approve an amount that, along with earnings on its investment, will cover the annual payments. Investment of the funds will be limited to savings (at 4% annually) and government securities, at prices and rates currently quoted in The Wall Street Journal. Hoxworth wants to develop a plan for making the annual payments by investing in the following securities (par value = $1,000). Funds not invested in these securities will be placed in savings. Security Current Price 1 $1,055 Rate (%) Years to Maturity 6.750 3 2 $1,000 5.125 Assume that interest is paid annually. The plan will be submitted to the judge and, if approved, Hoxworth will be required to…arrow_forward
- Put the sections of Cornell notes in the order of completion.arrow_forwardagree or disagree with the post Hi Class! Egyptian dates are much sweeter! Due largely to their climate and geography, Egypt, Saudi Arabia, Algeria, and Iran produce more dates than either the US or Canada. Dates grow best in hot dry climates with long dry growing seasons, which these nations naturally offer. They also produce a lot of dates because of their extensive agricultural, infrastructure, and centuries-old date-growing expertise. Conversely, the U.S., there aren't many places in Canada and California that are suitable for date farming, only a select few, like the Coachella Valley, in California can produce dates on a large scale. Although California produces some dates, it is not as much as countries like Saudi Arabia and Egypt. Depending only on U.S., because of increased labor and production costs, dates grown in this way may have a limited supply and raise prices. We can obtain a greater supply of dates at competitive prices while maintaining consistent quality by…arrow_forwardIn 1932 babe Ruth made $75,000. How much is that in todays dollars please give the right answer step by steparrow_forward
- Evaluate machine XYZ when MARR is 12% per year. Pertinent data are as follows: Machine XYZ Investment cost Expected life Market (salvage) value Annual revenue Annual expenses $10,000 5 years $1,000 $8,000 $4,000 How much is the excess of the cash flow using the Annual Worth Method? Blank 1 Calculate the External Rate of Return. Blank 2 Compute the payback period of the investment. Blank 3 Would you recommend this investment? Explain briefly. Blank 4arrow_forwardPlease make sure to answer each step and show work. Thank you!arrow_forwardPlease make sure to answer each step and show work. Thank you!arrow_forward
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning