Which of the following is NOT a factor for rising hospital costs? O Paperwork Charges based on items used, not per person or procedure Growing competition among hospitals Declining occupancy rates
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During the last five years average daily occupancy at Autumn Acres nursing home has slid from 125 to 95 even though Autumn Acres has cut its daily rate from $125 to $115. Do these data suggest that occupancy would have been higher if Autumn Acres had raised its rates? What changes in non-price demand factors might explain this? (There have been no changes in supply. The number of nursing home beds in the area has not changed during this period.)
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A report from the Center for American Progress states that administration costs for healthcare in the United States are well above those in other high-income countries, accounting for 8.3 percent of spending in the healthcare sector, compared to a global average of about 3 percent. According to the report, average billing and insurance-related costs per patient encounter include $215 for inpatient surgery, $62 for an emergency room visit, and $20 for a primary care visit. The report noted that a structural overhaul of finance and pricing in the healthcare industry would greatly help in eliminating excess administrative costs, but moving to a complete single-payer healthcare system is not mandatory. According to the report, setting uniform rates where all health insurers pay the same price for services would go a long way to reducing administrative costs. Source: Sarah Kilff, "2 charts that show our healthcare administrative costs are really high," vox.com, April 8, 2019. The article discusses the high administrative costs of healthcare in the United States. Even if private insurance companies were more efficient and brought administrative costs down, consumers would pay more than the full cost of medical treatment. This would result in the market equilibrium price and quantity of medical services being less than the efficient equilibrium price and quantity.
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What political or economic factor most threatens the security of Medicare? Select one: b. Costs of health care are increasing below inflation rate, reducing the need for Medicare. d. The poverty rate is plummeting; so few people need Medicare that the cost of maintaining it exceeds the benefits.
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