School of Health and Environmental Studies

Master of Science in Hospital Management

Economics and Financial Management in Health Sciences (PUBH609)

Assignment No.1                                                            Weighting: 30%

 

Question #1: (7.5 points)

 

Q1. Provide a response for each of the following cases? (Draw diagrams that show the changes in the supply and/or the demand; insert your diagrams as images)

 

1.1 Suppose that the treatment of a back problem by a chiropractor is an alternative for some of the treatments provided by orthopedic doctors. If the price of orthopedic surgery rises, how would this event affect the demand for orthopedic and chiropractic therapies?

 

1.2 Suppose that a health plan depends on a fee-for-service payment method, in which health care providers are paid for each individual service they provide. How would this affect providers’ supply of services and the demand for health care for uninsured patients?

 

1.3 Suppose that a technological breakthrough in the production of diet pills has occurred—every factory can now make these pills more cheaply than it did before. What would happen to the supply of the drug?

 

1.4 Suppose that the prices of Botox injections increased by 20%. How would this event affect the demand for this non-surgical cosmetic treatment if one discovered that the demand is perfectly elastic?

 

1.5 Suppose that licensure requirements become more stringent so that fewer physical therapists will be able to help people with physical disabilities. What would happen to the supply curve for rehabilitation services?

 

 

Question#2: (2 points)

Q2. Identify a recent study in the literature which has investigated the impact of income on the demand for health care?

2.1. Give the full reference for your chosen study. (post as image-abstract only)

2.2. Write a short paragraph (3-4 sentences) to summarize how income is correlated with the demand for health care?

 

 

 

 

Question#3: (4.5 points)

Q3. Consider the following diagram to answer the following three questions:

 

3.1 Identify the curve that represents the least elastic demand? (Explain your answer)

 

3.2 Identify the demand curve for an uninsured patient? (Explain your answer)

 

3.3 Identify the supply curve of pharmaceutical products if the UAE government imposes additional taxes on the pharmaceutical raw materials? (Explain your answer)

 

Question #4: (3 points)

Q4. Identify whether the following scenarios are meant to increase/decrease moral hazards? (Explain your answer in each scenario)

4.1 George is covered by an insurance policy with AED 10,000 stop-loss provision, while his annual expenditures are AED 35,000.

 

4.2 Mike is covered by an insurance company that imposes high cost sharing for insured persons.

 

4.3 In orient insurance company, patients pay on the basis of fee-for- service.

 

 

 

 

 

 

 

Question#5: (3 points)

Using the data shown in the table below about demand for diabetic socks:

5.1 Calculate the price elasticity of demand from point D to point E, and point G to point H.

3.4 Classify the elasticity at each point as elastic or inelastic. (Explain your answer)

 

 

 

 

Good Luck

Guidelines for Completion

 

 

• Word length: up to 1000 words – (you can omit questions and put headings as answer 1,,,etc) This is to use wording in answers
• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA style
• Include a cover page containing the number of the assignment, your name, the professor’s name, the course title, and the date of submission.
• The cover page and the reference page are not included in the required assignment word length.
• Use graphs, when applicable.

 

• Please do not copy from lectures or readings.