Health Economics and Policy
7th Edition
ISBN: 9781337106757
Author: James W. Henderson
Publisher: Cengage Learning
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Question
Chapter 9, Problem 1QAP
To determine
Surgeons’ ability in increasing the
Expert Solution & Answer
Explanation of Solution
Surgeons have a higher ability in increasing the demand for surgeries as they attempt to increase the demand for their services that will increase their income. One of the most common surgeries unnecessarily prescribed by the doctors is bypasses. Sometimes even for the minor heart diseases some doctors tend to overprescribe the bypass that may lead towards more complicated medical issues. Women have been identified as the main victims of these unnecessarily prescribed surgeries. With rising demand for hysterectomies and caesarean sections surgeries, this has been evident. One of the most commonly prescribed unnecessary surgeries include removing of the uterus and other parts of the uterus that may lead towards complications in certain situations. In determining these unnecessarily prescribed surgeries, it is recommended that the patients seek opinion from another surgeon/doctor especially in the government sector as they serve the public with less purpose of making profits that is lacking in most of the private sector surgeons and doctors.
Economics Concept Introduction
Introduction:
The objective of this study is to analyze the surgeons’ ability in increasing the demand for surgeries and the kinds of surgeries fall into this category and how to determine that they are unnecessary.
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Some argue that the price elasticity of demand can be used to determine whether a good or service is a luxury or a necessity. In medical care, a procedure with an elastic demand would be considered optional, or elective, and a procedure with an inelastic demand would be a medical necessity. Should planners use price elasticity of demand as a guide to defining services that are medically necessary? What are the advantages of such a classification scheme? What are the drawbacks?
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Chapter 9 Solutions
Health Economics and Policy
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Similar questions
- Demand studies in health care have provided estimates of both income and price elasticity. Estimates of income elasticity are usually above +1.0. Estimates of price elasticity typically range between -0.1 and -.75 (with hospital services at the lower end and elective services at the upper end). What information do these estimates convey? What does the price elasticity of demand estimates imply for government policymakers, insurance companies, and medical providers' decisions? What does the income elasticity of demand estimates imply for government policymakers, insurance companies, and medical providers' decisions?arrow_forwardDemand falls by 5 percent for every 10 percent increase in price health care services. How much is the won price elasticity of demand for health care?arrow_forwardWhat is the impact of aging societies like Japan and some other European countries on the demand for health services?arrow_forward
- How does the law of supply and demand apply to the growing success of the urgent care medical market in the United States?arrow_forwardWhat is the significance when it comes to 3rd party payor to show it's efficient function of a medical market?arrow_forwardThe price elasticity of demand for health care has been estimated to be −0.2. Characterize this demand as price elastic, unit price elastic, or price inelastic. The text argues that the greater the importance of an item in consumer budgets, the greater its elasticity. Health-care costs account for a relatively large share of household budgets. How could the price elasticity of demand for health care be such a small number?arrow_forward
- Do countries with national health insurance programs have lower average medical costs than the United States? Is cost of care correlated with quality of care?arrow_forwardimprovement in technology usually result in lower cost of production or new and improved consumer goods and services .Assume that an improvement in medical technolgy result in an increase in life expectancy for people 65 years and older . How would this technolgical advance be likely to affect expenditure on health care?arrow_forwardWhy are the various forms of e- and m-commerce important in health care? Be sure to include the electronic payments systems needed to support this type of commerce in a healthcare environment and how do e- and m-commerce affect the way payments are made.arrow_forward
- How will an aging population influence health policy makers in the 21st- century?arrow_forwardWhat are the differences and similarities between health economics and other forms of economic study?arrow_forwardPlease no written by hand and no image How do you do this in excel? Suppose you are collecting data from a country like Japan where the government sets the price of health care. Each prefecture in Japan has a different set of prices (for example, Tokyo has higher prices than rural Hokkaido). Data for 1999 is displayed in Table 2.12. Table 2.12. Outpatient utilization in Tokyo and Hokkaido, 1999. RegionOut patient visitsPrice/visitsTokyo1.25/months20Hokkaido1.5/months10 A) What is the arc price elastic of demand for health care consumers in Japan (using only this data)? B) Suppose that incomes are generally much higher in Tokyo than Hokkaido. Is your answer to the last question an overestimate or underestimate of price elasticity? Justify your answer. [Hint: It may be helpful to plot the data points from Table 2.12 and consider likely demand curves for Tokyo and Hokkaido.] C) Using your estimated elasticity, what would the demand for health care be if the price in Tokyo were raised to…arrow_forward
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