Economics For Healthcare Managers
4th Edition
ISBN: 9781640550483
Author: Robert H. Lee
Publisher: Health Administration Pr
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Chapter 6, Problem 1E
To determine
Determine the average spending.
Expert Solution & Answer
Explanation of Solution
The average spending of high-risk patients is $40,000, low-risk patients is $1,000, and the overall low-risk patients is 90%.
Therefore, the average spending for this population can be calculated as follows:
Thus, the average spending is $4,900.
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