Economics For Healthcare Managers
4th Edition
ISBN: 9781640550483
Author: Robert H. Lee
Publisher: Health Administration Pr
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Students have asked these similar questions
You have been recruited as an expert in health economics to recommend
what is the best therapy for a group of patients. In the image below you will
find the decision tree showing the probabilities for different health states
and outcomes for patients undergoing two possible treatments, No drug
therapy and Drug therapy. Based on the expected cost, which therapy
would you recommend as the least expensive? Explain how you arrived at
your recommendation and show your calculations the space provided.
No drug theraphy ?
Drug theraphy
?
HEALTH STATES
PROBABILITIES
Remain in Good Health
0.5
Develop disease A
0.2
Develop disease B
0.2
Die
0.1
Remain in Good Health
0.53
Develop disease A
0.16
Develop disease B
0.22
Die
0.09
OUTCOMES
(Costs)
$0
$400
$300
$200
SO
$800
$500
$0
describe Diagnostic Research Design
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?
Chapter 9 Solutions
Economics For Healthcare Managers
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