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You just started working as a Health Service Manager within one of the following health care industries. First choose an industry below to discuss the questions that follow:

  1. Ambulatory Surgery center
  2. Pharmacy
  3. Physician’s Office
  4. Cosmetic Surgery Center
  5. Laser Eye Center
  6. Dental Office

Your boss has asked you to write a report detailing how the demand for your product(s) is impacted by various economic factors. In writing your memo, be sure to include your name and in the subject line identify the health care entity you chose above. In order for your boss to easily review your memo, please include section headers to correspond to the questions below.

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Answer the following questions relying primarily on the course readings and other resource material presented in this class (do not cite any other outside sources).

  1. Describe a product or service your company provides to your patients
  2. Evaluate the demand curve for your product and relationship between the price of your service/product and the quantity demanded.

In this evaluation, be sure to identify:

  • whether demand is sensitive (e.g. elastic) or less sensitive (e.g. inelastic) to changes in the price and
  • evaluate why this relationship might occur.
  • include a discussion of how the existence of health insurance would impact the elasticity of demand.
  1. Define “substitute” goods and identify potential substitutes for your product/service. Evaluate how does the existence of a substitute impact the demand for your product/service.
  2. Define “complement” goods and identify potential complements for your product/service. Evaluate how does the existence of complement goods impact the demand for your product/service.
  3. Identify and discuss the economic factors that might lead to a shift in the demand curve for your product/service?

There are two textbooks for this course:

1)The first text for this course is written by Mayer, “Everything Economics”.

search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=418083&site=eds-live&scope=site&profile=edsebook

The second textbook is: Economic Theory Through Application

https://saylordotorg.github.io/text_economics-theory-through-applications/

https://saylordotorg.github.io/text_economics-theory-through-applications/


6) National Health Expenditures 2016 HIghlights

https://www.cms.gov/research-statistics-data-and-systems/statistics-trends-and-reports/nationalhealthexpenddata/downloads/highlights.pdf

7) What Do We Spend on Healthcare: National Health Accounts Forecast:

See Forecast Summary link and Tables 1, 2, and 3 in detailed data files:

https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/NationalHealthAccountsProjected.html

Read: 1)Mayer Chapter 6: Supply and Demand

2) Economic Theory Through Application Chapter 4: Everyday Decisions (p. 54-90)

3) Economic Theory Through Application- Chapter 6.3 Supply and Demand (p. 202-213)

Chapter 7.2: Revenues of A Firm (p. 244- 62)

4) Health Economics and the Law of Demand (see under this week’s content below)

5) Monitoring Health Spending Increases: Incremental Budget Analyses Reveal Challenging Tradeoffs

https://www.cms.gov/Research-Statistics-Data-and-systems/Research/HealthCareFinancingReview/Downloads/06Fallpg41.pdfRead:
1) Economic Theory Through Applications- Chapter 5.3 Avoiding Risk (p. 155-167)
2) Economic Theory Through Applications- Chapter 5.4 Embracing Risk (p. 168-177)
3) Economic Theory Through Application: Chapter 16.2 Health Insurance (page 718-729)
4) “Consumer Demand for Health Insurance” http://www.nber.org/reporter/summer06/buchmueller.html

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