Who Are Decision Makers in Hospitals?
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Who Are Decision Makers in Hospitals?
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Write My Essay For Me6.1 Who are decision makers in hospitals? Do the hospital’s decision makers differ in the Newhouse model and the Pauly-Reddish model? If so, explain how they differ.
6.2 Suppose a for-profit hospital makes its decisions by adopting the rule of profit maximizing and another not-for-profit hospital follows the decision rule described by the Newhouse model. Which hospital is likely to be more efficient? How can hospital efficiency be measured?
6.3 What is meant by the term “physicians’ cooperative”? Give three examples of cooperatives in markets other than for physicians’ services and explain the motivation for forming such cooperatives.
6.4 In the PaulyRedisch model, physicians on the medical staff are the residual claimants. a. What is meant by the term “residual claimant”—in general and in this context? b. What is meant by closed versus open staffing of hospitals? Describe the circum-stances under which staffing is closed and open, using a graph. c. In what sense might closed staffing be a good thing from the standpoint of doctors? From the standpoint of consumer welfare? In what sense might closed staffing be disadvantageous to consumers?
6.5 Describe at least three arguments in the economic literature to justify the fact that not-for-profit hospitals, both private and public, tend to be more numerous than for-profit hospitals in many health care systems around the world.
6.6 What is the theoretical relationship between hospital ownership and hospital performance? Do private not-for-profit hospitals enjoy any advantage that might increase their measured efficiency relative to that of for-profit hospitals? What do the Newhouse and the physicians’ cooperative models imply about the efficiency of private not-for-profit hospitals relative to that of for-profit hospitals?
6.7 Overall, what does the empirical evidence show about the relative performance of for-profit and private not-for-profit hospitals?
6.8 What is meant by the expression “medical arms race”? What are preconditions for such a race to occur? What are the consequences of hospital competition induced by a medical arms race?
6.9 Explain the distinction between retrospective cost-based reimbursement and a prospective payment system (PPS), such as the one operated by the Medicare program in the United States. Why do health care payers generally prefer PPS to cost-based reimbursement but providers often prefer cost-based reimbursement to PPS?
Who Are Decision Makers in Hospitals? Essay
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