Project #31654 - Health Economics

Health Economics Assignment 3 

 

Why is it important to distinguish between fixed and variable costs? 

 

A patient visits a clinic. She incurs $10 in travel costs and has a copayment of $20. The 

clinic’s total charge is $60. The clinic spends $9 to bill the insurance company for the visit 

and uses resources worth $51 to produce the visit. The insurance company pays the clinic 

$40 and spends $11 to process the claim. Describe the cost of the visit from the perspective 

of the patient, the clinic, the insurer, and society. 

 

Should medical services be free? Justify your answer. 

 

Your hospital is considering opening a satellite urgent care center about five miles from your 

main campus. You have been charged with gathering demographic information that might 

affect the demand for the center’s services. What data are likely to be relevant? 

 

Subject Business
Due By (Pacific Time) 05/27/2014 09:00 am
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