Economics of healthcare

Test Two is worth 15 points.  Each of the three questions below is worth 5 points.  You need to answer all 3 questions.  It is expected that it would take you at least one single spaced typed page to answer a question.  (Assuming one inch margins and 12 pt font.)  All answers must be in one Word file.  Handwritten work scanned into a Word document is not acceptable.  Please be sure to provide citations for your sources.  If you have not read the Rubric for Grading and Directions for Submitting Tests please do so.  They are just above this test.

If you have technical difficulties uploading your file to this test, please contact the Open SUNY Helpdesk.  I will accept work up to 48 hours late.  If on the test due date, November 1, you are working later than the Helpdesk is open and have a problem, do not panic.  Just contact the Open SUNY Helpdesk the next day for assistance in uploading your file.  With the 48 hour late policy, I will accept Test Two up until November 3.  If you use up the 48 hour grace period in writing the exam and then cannot get it to load or have some other issue, I am sorry but you will have a 0 on the test.  It is up to you to submit the correct file in the correct format to this exam.  Your file has to be a .doc or .docx file.  You can go in and view what you submitted to be sure it went through and you submitted the file you wanted to.

Please remember that the penalty for any violation of the SUNY Canton Academic Integrity Policy will result in an F for you in the course.  If you need to review the Academic Integrity Policy, it is available on the college’s website.  I strongly encourage you to do so.  Ignorance will not be a defense if you violate the policy.  By submitting your answers to this test you are acknowledging that you were made aware of the Academic Integrity Policy, advised to review it and understand the penalty for a violation in this course.  In addition, please remember the course policy (located on the syllabus) concerning the use of quotes.  A series of quotes does not make for a well written answer.  Quotes should only be used if the exact phrasing of the author is required in your answer.  For answers on this exam, the exact wording of an author is not needed.  The misuse or over use of quotes will significantly reduce your grade.

Once you have written your answers to this exam and have them saved all in one Word .doc or .docx file, to upload the test you will need to come back to this area and click on the T2 that is above.

Question One

Write an essay in which you

  1. Define and provide an original example of the concepts listed below.
  2. Discuss their significance in determining the efficient functioning of a medical market.

Concepts

  1. Moral Hazard
  2. Adverse Selection
  3. Asymmetric Information
  4. Third-Party Payer
  5. Cream Skimming

Question Two

Write an essay in which you

  1. Describe the theory of physician induced demand for medical services.
  2. Explain how the dual nature of the physician’s role as both advisor and provider support the induced demand theory.
  3. Identify and explain what implications physician induced demand have for healthcare policy.
  4. Discuss how health insurance reinforces physician induced demand.
  5. Discuss what the natural limits to the alleged problem of physician induced demand are.

Question Three

Write an essay in which you

  1. Describe the different characteristics of the for-profit and the not-for-profit hospitals.
  2. Discuss whether the non-for-profit hospital status eliminates the for-profit behavior.  Explain your answer.
  3. Define cost-plus pricing and discuss how it affects hospitals behavior?
 
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