100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
HCM 402 Economics for Healthcare Managers Unit 1: Chapter 1 || Questions and 100% Accurate Answers. CA$15.22   Add to cart
Quickly navigate to
Preview
  2.  
  3. HCM 402 Economics For Healthcare Managers Unit 1:
  4.  
  5. HCM 402 Economics for Healthcare Managers Unit 1:

Exam (elaborations)

HCM 402 Economics for Healthcare Managers Unit 1: Chapter 1 || Questions and 100% Accurate Answers.
 7 views  0 purchase
  • Course
  • HCM 402 Economics for Healthcare Managers Unit 1:
  • Institution
  • HCM 402 Economics For Healthcare Managers Unit 1:

Why is economics valuable for managers? correct answers 1. Economics helps managers focus on key issues. 2. Economics outlines strategies for realizing goals given the available resources. 3. Economics gives managers ground rules for strategic decision making. 4. Economics gives managers a frame...

[Show more]

Preview 2 out of 5  pages

Document information

  • August 16, 2024
  • 5
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • why is economics valuable for managers

Written for

  • HCM 402 Economics for Healthcare Managers Unit 1:
  • HCM 402 Economics for Healthcare Managers Unit 1:

Seller

avatar-seller
FullyFocus

Reviews received

Content preview

HCM 402 Economics for Healthcare Managers Unit 1:
Chapter 1 || Questions and 100% Accurate Answers.
Why is economics valuable for managers? correct answers 1. Economics helps managers focus
on key issues.
2. Economics outlines strategies for realizing goals given the available resources.
3. Economics gives managers ground rules for strategic decision making.
4. Economics gives managers a framework making sense out of costs.
5. Economics gives managers a framework for thinking about value.
6. Economics sensitizes managers to fundamental ideas that affect the operations of every
organization.

What special challenges to healthcare managers face? correct answers 1. The central roles of risk
and uncertainty
2. The complexities created by insurance
3. The perils produced by information asymmetries
4. The problems posed by not-for-profit organizations
5. The rapid and confusing course of technical and institutional change

Cost correct answers The value of a resource in its next best use

Economics is a map for decision making correct answers 1. It suppresses what is not important
2. It highlights what is important

Marginal/Incremental correct answers Involving a small change from the current situation

Marginal/Incremental costs correct answers The cost of producing an additional unit of output

Rational Decision Making correct answers Choosing the course of action that gives you the best
outcomes, given the constraints you face

Economics analyzes the allocation of scarce resources correct answers True

Resource correct answers Something useful in consumption and production

Scarce correct answers has alternative uses

Limits to Rationality correct answers Management time is scarce
Complete rationality is irrational
Managers use decision shortcuts

Three Questions relevant to economics correct answers - What shall we produce?
- How shall we produce it?
- Who gets what we produce?

, What are major challenges for healthcare managers? correct answers 1. Insurance
2. Risk and uncertainty
3. Information asymmetry
4. Not-for-profit organizations
5. Technical and institutional change

Insurance as a challenge correct answers - Multiple "customers" (patient and insurer)
- Complex billing rules
- Dependence on a handful of insurers (Medicare, Blue Cross)

Ongoing Changes to Insurance correct answers - New Types (high-deductible plans, Individual
plans)
- New focus on costs

Risk and Uncertainty as a challenge correct answers - The usual uncertainties of business
(behavior of rivals, state of the economy)

Information Asymmetries as a challenge correct answers The party with more information has an
opportunity to take advantage of the party with less information; recognizing a disadvantage the
party with less information may become skeptical of the other party's motivation and decline a
recommendation that would be beneficial

Information Asymmetry definition correct answers When one party in a transaction has less
information than another

Adverse selection correct answers - High-risk consumers' willingness to pay more for insurance
than low-rick consumers
- Organizations that have difficulty distinguishing high-risk from low-risk consumers are
unlikely to be profitable

The special problems in healthcare with risk and uncertanty correct answers - Good luck/good
performance = good outcomes
- Bad luck/bad performance = bad outcomes

Who gets what we make? How will products be allocated? correct answers 1. Prices (if prices are
high, only those who are able to pay would receive product)
2. Waits (whomever was willing to wait for product)
3. Insurance coverage (if somebody else is paying for your product, would people be more
interested in getting product?)
4. Rules and Regulations (medications should be governed by rules and regulations, limiting the
population who may receive your product)

Information Asymmetries are common problems for correct answers 1. Supervisors and
subordinates
2. Professionals and clients
3. Insurers and customers

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$15.22. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67096 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$15.22
  • (0)
  Add to cart