Analyze what would happen to volume of services and

Reference no: EM13396109

You are the administrator for a medical practice. Assume all of your practice's patients are covered by insurance. Insurance pays, on average, 80% of your fee for a physician visit for which your practice charge is $100. The patient is responsible for the $100 fee but receives 80% back from the insurer. Currently, your practice's volume for this service is 1,500 per year. Answer the following question in regard to this assumption:

Estimate what would happen to the volume of services and the expected revenue to the practice, should the area's health insurers increase patient cost sharing from 20% to 30% of this charge. Use the concept of price elasticity to make the projection.

Use the elasticities given in Wedig's, 1988 study: Price elasticity for physician visits for patients in good or excellent health is -0.35, while the price elasticity for physician visits for patients in fair or poor health is -0.16.

After a quick survey, you decide that 65% of the practice's patients are in at least good health and account for 1,000 of the 1,500 visits. The remaining patients are in fair or poor health. In light of this survey, write out all the steps of the calculation.

Write answers separately for patients in each category of health status-excellent, good, fair, and poor-for all patients.

Reference no: EM13396109

Questions Cloud

Explain the journey of a hypothetical enveloped - rna virus : describe the journey of a hypothetical enveloped - rna virus through three basic host barriers to infection physical b

Examine how your pricing strategy supports your branding : continuing to build your marketing plan this assignment focuses on branding pricing and distribution of your product

Then defend the benefits gained from the main regulatory : write a paper responding to the following items1.defend the rationale for regulation within the commercial banking

In brief explain the ten organisms and the kind of : briefly describe the ten organisms and the type of conditions-that is moisture warm temperatures or a type of

Analyze what would happen to volume of services and : you are the administrator for a medical practice. assume all of your practices patients are covered by insurance.

Assume an after-tax cost of new debt of 863 percent and a : the following are balance sheets for the genatron manufacturing corporation for the years 2010 and 2011 balance sheet

Prepare a list identifying at least ten organisms-at least : make a list identifying at least ten organisms-at least five plants and five animals-that live in your biome and

Describe types of incentives to providers for efficiency in : a new type of third-party-reimbursement healthcare payment plan is emerging in the united states. cdhps strive to

Determine whether there are ldquoelectronic privacy : write a 3-4 page paper in which you1.list and describe at least three 3 technologies that allow an individual to

User Account

All Pages