Health Status and The Demand for Health
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages
Health Status and The Demand for Health
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.
For your calculations, use the following as the price elasticities for physician visits:
- –0.35, for patients in good or excellent health, and
- –0.16, for patients in fair or poor health (taken from Wedig’s, 1988).
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.
Wedig, G. J. (1988). Health status and the demand for health: Results on price elasticities. Journal of Health Economics, 7(2), 151–163. Retrieved from http://ideas.repec.org/a/eee/jhecon/v7y1988i2p151-163.html
LEARNING TEAM REFLECTION 1
LEARNING TEAM REFLECTION 3
Learning Team Reflection
Augusto Alvarez, Ani Hakobyan, Stephanie Kirk, Cristina Linares, Debbie Voeks
FIN/571 Foundations of Corporate Finance
June 23, 2014
Learning Team Reflection
Turning tangible assets into investments is nothing new, investors did the same thing during previous market downturns, and they did not always come out ahead. A year ago, 49 years old Peggy Parks, who worked as a building code auditor got tired of watching her retirement savings investments going in the wrong direction and resulting in losing half of her 401(K) investments. To recover from that lost, Peggy Parks made an unconventional investment after learning how robust the Alpaca’s business can be. According to Peggy, “with Alpacas it is something tangible that you have on hand and always going to be there” (University of Phoenix, 2014).
Peggy lost almost half her retirement in the stock market and decided to turn to the Alpaca business for her new retirement plan (University of Phoenix, 2014). She had made a good return the first year of business. There is a risk involved with investing in only one asset. Stable Money Makers demonstrated this when it mentioned how investors lost significant money from investing in Emus in the 1990’s.
Diversification is reducing risk by investing in two or more assets whose values do not always move in the same direction at the same time (Parrino, Kidwell, & Bates, 2012, p. 214). Investing in another asset in addition to the Alpacas would improve Peggy’s business.
If Peggy wants another tangible asset investing in cattle or production of hay are good options. They are not directly related to the Alpacas so if prices fall on Alpacas, and Peggy still has cattle or hay to sell. By investing in more than one asset Peggy decreases her risk and improves her retirement plan.
Other step that Peggy could take in order to improve the capital is to sell additional offspring from the current herd, and reinvested the revenue into more diverse bloodlines. This step will help the herd size to grow and more wool to be produced. It is anticipated that Peggy will incur costs associated with land use, feed, nutritional supplements, supplies and veterinary bills.
As her herd expands she will need to expand capacity of her facilities in the form of a new barn. Construction expense for expansion should be approximately $40,000. This capital expense will provide Peggy with the space and capacity to increase her herd size as well as act as a central hub for the alpaca business in her community. Peggy is hoping to add to her revenue stream by doing grooming and wool harvest for other farmers, charging stud services as well as increasing the size of her own herd. Also since the animals are insurable than Peggy’s investment and business can be protected by insurance.
Peggy needs to maximize her tax advantages because that can help with capital improvement. All the feed, fertilizer, and veterinary bills can be written off if the alpacas are raised for profit. Items such as barns, fences, ranch repairs and maintenance will count towards tax write offs as well as tractors, and trailers which have scheduled write offs. Peggy could send her alpacas to a breeder instead of raising them on her own which would help with expenses. She would still make the decisions on sales, care, and feeding.
Parrino, R., Kidwell, D.S., & Bates, T.W. (2012). Fundamentals of Corporate Finance (2nd ed.). Hoboken, NJ: Wiley.
Rolling Hills Alpacas. (2014). The Financial Aspects of Alpaca Ownership. Retrieved from
University of Phoenix. (2014). “Corporate Finance Video: Stable Money Makers” [Multimedia]. Retrieved from University of Phoenix, FIN571-Corporate Finance website.
Health Status and The Demand for Health Essay Case Study
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper.
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Health Status and The Demand for Health Essay Case Study
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