Hospitals & Nonprofits
A numerical measure of the intensity of patient cases treated by a given hospital, so that a higher value indicates a greater average degree of complexity of the cases.
What is case mix index?
An agency relationship is formed whenever a ________ (for example, a patient) delegates decision-making authority to another party, the ________.
what are principal and agent?
What are two things that trade-off in policy relating to pharmaceutical drugs?
What are affordability and innovation?
Examples include schooling, on the job training, and learning by doing?
What is human capital investment?
The idea that the act of transferring wealth from one group to another in society may generate disincentives that discourage productive effort.
What is Okun's leaky bucket?
A good that no one can be prevented from consuming (i.e., nonexcludable) and that can be consumed by one person without depleting it for another (i.e., nonrival).
What is a public good?
The low-income insurance program that people frequently rely on in times of economic recession.
What is Medicaid?
The country with outcomes about equal to the U.S., but lower cost, longer wait times, and a shortage of nursing home beds.
What is the U.K.?
physicians have desired incomes that they strive to achieve or to restore whenever actual income falls below the targets.
What is the target income hypothesis?
The proportion of U.S. health spending on prescription drugs.
what is ~9%?
(hospital care=31%, physicians 15%)
The operating condition for a practice or a hospital using MR and MC.
What is MR must cover MC?
If the goal is equality in outcomes, it will likely be the case that the cost of bringing all inputs to bear for some patients, even when these inputs have little effect on the patient’s health, could exhaust society’s resources.
What is the bottomless pit criticism of a need based distribution?
This method compares the costs of achieving a particular nonmonetary objective, such as lives saved, considering the ratio of incremental costs to incremental output.
What is cost effectiveness analysis?
When a policy leads to public insurance replacing private insurance.
What is crowd-out?
Unexplained differences in rates for different types of health services
WHat are small area variations?
The proportion of hospital admissions at a non profit hospital
Two-Thirds
Result on equilibrium price and quantity of demand decreasing and supply increasing simultaneously.
what are lower price and ambiguous quantity?
What are some policies that support innovation in the US pharmaceutical market?
What are patent protection and the Orphan drug act, not letting Medicare act as a monopsony, NIH money for early stage research, tax credits for r&d, among others?
The name of the physician supply curve that experiences the substitution effect at lower wages and then the income effect at higher wages.
What is the backward-bending labor supply curve?
The name of the design style that includes fresh air flow, areas to walk, easy to clean spaces with tile, and lots of natural light?
what is hygienic architecture?
it is a cost or benefit that affects others but is not considered by any individual consumer.
What is an externality?
Medicaid represents a major budgetary outlay for states and ____________.
What is the federal government?
5 Criticisms of Nonprofit Hospitals
1. not enough community benefit
2. big tax breaks
3. high salaries for execs
4. Special treatment for trustees
5. Sending patients to collection
Barriers to entry in the physician market
What are licensure and certification? Limited number of residency slots?
The US pays _____% more than other developed countries for prescription drugs on average.
what is 256 %?
What are Economic stability, neighborhood and physical environment, education, food, community, health care system, racism/discrimination
5 Factors that cause health disparities
What are education, feedback, surveillance?
What are quality improvement methods?
What are confusion over the benefits provided by Medicare and private health plans, perceptions that such insurance is unaffordable or a “bad investment” if they are not going to use it, and perceptions that governments will somehow meet LTC needs.
Barriers to the growth of the long-term care insurance market?
What proportion of the hospital market is considered competitive based on the HHI?
What is 6%?
one who makes those choices and recommendations on behalf of the patients that the patients themselves would have made if they had the same information
What is the perfect agent?
The reason measures of concentration in the prescription drug market are believed to be too low.
The markets are not specific enough by drug class
the collection of all Pareto-efficient points in the Edgeworth box
What is the contract curve?
A measure of the net loss of society’s welfare resulting from a misallocation of resources, usually situations in which the marginal benefits of a good do not equal marginal costs.
What is deadweight loss (transactions that would have occurred in a competitive market that no longer occur)?
6,129
730,000
63 million
What are the number of hospitals, doctors, and Medicare beneficiaries in the U.S.?
Average commercial prices for physician and hospital services as a % of Medicare prices.
Physician =129
Hospital = 223