HA604 Park University Healthcare Economics Concepts and Applications Paper
There are a number of reasons why healthcare administrators need a solid understanding of concepts and applications associated with healthcare economics. First, understanding economics gives managers and leaders the ability to focus on key issues impacting their firm. As you know, there are many issues that impact financial and operational processes and outcomes; far too many to tackle at one time. Economics can assist management in prioritizing the issues that need to be addressed. Second, it permits managers the opportunity to formulate tactical and even longer term strategies to realize goals while effectively leveraging our scarce resources. Third, economics provides a framework from which to more fully appreciate how costs influence management decision-making. A cost that many organizations are required to incur is the availability of healthcare insurance for their employees. For those firms and industries that rely on third-party payers as a significant portion of their payer mix, it vital that managers and leader remain keenly aware of legislative actions, trends, problems associated with the insurance and managed care industries. In business, we, as healthcare leaders and managers, are constantly faced with uncertainty. This uncertainly can have a significant impact on the decision-making process. We need to develop a comfort level when working with imprecise estimates, exploring alternatives, and managing risk that is inherent in industry.
In order to support your understanding of healthcare economics and the financing system, you will be expected to complete the following end-of-chapter problems and mini-case:
Chapter 1: 1.3, 1.4, and 1.5 (pp. 14-16, Lee textbook)
Chapter 2: Omitted
Chapter 3: 3.6, 3.7, 3.13, and 3.14 (pp. 53-54, Lee textbook)
Chapter 4: Case 4.2, Investing in Cardiology Services (pp. 64-65, Lee textbook); 4.2, 4.3, 4.7, and 4.10 (pp. 70-72)
Unit Learning Outcomes
ULO 1. Determine the financial and economic implications associated with third-party coverage of key stakeholders (e.g., employers, clients, employees, and providers). (CLO 2, 6, and 7)
ULO 2. Calculate an expected value and standard deviation. (CL0 6 and 7)
ULO 3. Construct and use a decision tree to frame choices. (CLO 6 and 7)
ULO 4. Categorize major challenges for healthcare managers. (CLO 7)
ULO 5. Critique common approaches to managing risk. (CLO 3, 5, 6, and 7)
The students are expected to carefully read the assignment instructions, then thoroughly and explicitly address each question. Microsoft Excel will be used to perform the mathematical computations and graphs; however, the problems and their corresponding responses should be written up in a Microsoft Word document. Your responses to the assigned mini-case study should also be included in the same document. IMPORTANT: Make certain that there is a detailed description of how the calculations were performed. You will also need to include an interpretation of the results. While there is no minimum number of references that need to be utilized to support the completion of this assignment, it is generally understood that outside sources, including the text, will be necessary to complete the problems. The document must adhere to the APA writing style in terms of using in-text citations and the listing of sources on the references page. The Microsoft Word document and Excel spreadsheet are to be uploaded under the correct unit assignment page.