15 May HOW DO FEE-FOR-SERVICE AND CAPITATION PAYMENT SYSTEMS AFFECT THE PHYSICIAN’S ROLE AS THE PATIENT’S AGENT?
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.
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