Economics
Question 1.
How do fee-for-service and capitation payment systems affect the physician’s role as the patient’s agent?
What information would you need and how would you use it to determine whether
physicians were over- or underutilizing aides in their practice?
Question 2.
What is “cost shifting”? Explain why an increase in a hospital’s fixed costs or an increase in the number of
uninsured cared for by the hospital will not change the hospital’s profit-maximizing price. Similarly, why would a change in a hospital’s variable costs change the hospital’s profit-maximizing price? How does cost shifting differ from price discrimination?
I need 150 words on each question. Please cite the information used.
……………………………….Answer preview…………………………
Fee-for-services is a technique used for payment under which the provider is paid for any procedure or service that is offered to the patient. Capitation on the other hand is the method of reimbursement in various managed care plans in which a provider of services is paid a fixed amount per person over a period regardless of the amount rendered. Under the fee-for-services technique…………………….
APA
466 words
