CSULB HC system Questions

Content Type

User Generated

User

Pfrxm

Subject

Economics

School

California State University Long Beach

Description

Unformatted Attachment Preview

HCA 451 –Economics of Health Final Exam Dr. Qi Spring 2020 The exam is made up of three parts: Section I with 20 multiple choice questions (Section I is in the quiz mode on Beachboard; please complete it through Beachboard); Section II with 4 short answer questions and Section III with 2 large essay questions. The exam will be submitted through Beachboard Dropbox by deadline. Instructions are provided for each part. My signature below indicates that I understand that this is a take-home exam that I can use all the resources from textbook, notes, and internet, but no consultation with any other persons (including but not limited to current and previous students). My signature also indicates that I will follow the CSULB Policy on Academic Honesty. I understand that failure to follow this Policy will result in a 0 for this exam and possible academic action. Signature ID Print Name Date SECTION II. SHORT ANSWER QUESTIONS (8 points each) Please be concise and limit your answer to no more than 200 words. 1. Use graph to show why AMA sets high standard to restrict the number of physicians in the market, and explain it. 2. Explain which types of insurance coverage (a) or (b) within each pair would most likely cause more problems resulting from moral hazard and the reasons: i. (a) Indemnity payments of $10,000 for each eye or limb lost or (b) Indemnity payments of $50 for each day spent in a nursing home ii. (a) Treatment in an emergency room or (b) Treatment in an intensive care unit iii. (a) Arthroscopic surgery for knee injuries or (b) Amputation for foot injuries iv. (a) Family counseling or (b) Electroconvulsive therapy 3. We discussed in class about ACA Dependent Coverage (ACADC), and its impact through gaining insurance coverage on the avoidable hospitalizations. a) What is the impact of ACADC on the insurance coverage? b) What should be the theoretical impact of ACADC on the avoidable hospitalization? c) What was the real world impact of ACADC on the avoidable hospitalization? d) What were the reasons behind such real world phenomenon? List and explain each reason. 4. Marginal is the concept as additional. We normally use the concept marginal to make decision. What are the two major categories marginal analysis used for decision? Give me one example in each category. 1 SECTION III. LARGE ESSAY QUESTIONS These questions are designed to elicit broad integrative critical thinking and the application of policy and economics course concepts, principles and material. Thus, be sure to use policy and economics concepts, principles, and material from the course and presentations in answering the following essay questions. For each essay, there is not one single ‘correct answer’; instead, various answers are possible depending on how well they are argued and supported. So have fun expressing your own points of view, but support your views with course material. Take some time to think first, organize your thoughts second, and write third. (Limited to 600 and 1000 words separately for each question) Essay 1 (10 points) Much of what is happening in the health care sector is based upon and driven by ‘competition.’ Should competition among health care organizations (e.g. hospitals, physicians, integrated health systems, and managed care plans) be restrained and regulated by government policy? Use HCA 451 concepts, principles, and material about policy and economics to argue in favor of and then in opposition to that type of policy. Essay 2 (18 points) Economics helps us to answer and make decisions about four questions that concern allocation of health care (HC) resources and services: 1. what health care is produced? 2. how much health care is produced? 3. how is health care produced? 4. for whom is health care produced? Health policy can be analyzed by realizing that a problem in the HC system can lead to policy, and that policy can then lead to HC organizations adapting to the policy: Health care system problem  policy  adaptation by health care organizations Requirements: For each of the economic questions mentioned above (a-d. what, how much, how and for whom): #1. state and explain a past or current problem in our HC system as an example of that economic question #2. then state and describe a policy that was created to solve the problem in #1 above #3. then explain HC organizations’ adaptation to the policy in #2 above. There should be four different policies, each addressing a different economic question. Evaluation of answers will be based in part on how well they are taught and argued, and do not use many superficial comments. Use HCA 451 theories, concepts, principles, facts, and knowledge, and include a variety of health care organizations for adaptation. [Hint: your essay should include four parts: for question a, #1,#2,#3; then for question b, #1,#2,#3; then for question c, #1,#2,#3; then for question d, #1,#2,#3] 2
Purchase answer to see full attachment

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

Surname 1

Students Name
HCA 451 Economics of Health Exam
Dr. Qi
Spring 2020.
May 6, 2020.

SECTION 2
Question 1
The American Medical Association is responsible for enrolments of medical practitioners in
different hospitals. It regulates the number supplied in the market to control the quality of
healthcare services offered. Physicians are paid expensively, and the cost of maintaining them is
high. Therefore, increasing the supply to the market does not guarantee cheaper medical services,
but impacts on quality. Increasing the supply will diminish the quality of medical services

QUALITY

provided by physicians.

PHYSICIANS SUPPLY

Surname 2

An increase in the number of physicians in the market will increase the supply and impact on the
supply curve. It may slightly decrease the prices of service (though this is not guaranteed), but
the quality of services will decrease as shown in the curve.

QUESTION 2
i.

An indemnity payment of $50 for each day spent in a nursing home is more likely to
cause a moral hazard as compared to a payment of $10000 paid for each eye or limb loss.
It is because the owner less feels the risk. Therefore, it is likely that someone can take
advantage and exploit, and the risk owner may not notice immediately.

ii.

Treatment in an emergency room is likely to attract moral hazard than treatment in the
ICU. ICU treatments are more expensive than emergency room care. Therefore, small
emergency payments are less noticeable and more prone to moral hazards, and the payer
may not notice when there is exploitation.

iii.

Arthroscopic surgery is likely to cause a moral hazard as compared to knee amputation
procedures. It is a simple surgical procedure, but surgical procedures are likely
expensive, and the process may be charged highly on this notion. The patient may not
notice if the procedure is overcharged.

iv.

Family counseling is likely to attract moral hazard as compared to electroconvulsive
therapy. Family counseling is cheaper; hence if charges are slightly raised, the payer may
still not feel the effect.

Question 3
a) The impact of ACADC on insurance coverage.

Surname 3

The introduction of the Affordable Care Act led to an increased number of insured adults
statistically estimated to rise to 20 million people. Low-income populations from
Medicaid states were able to acquire insurance and access affordable healthcare services.
Also, the act gave a provision of extending the insurable age of adolescents from 18years
to 26 years. Therefore, those without insurance could b...