Healthcare Econ weeks 4-6 homework

Uzi Ahmed
Individual Work
Week 4-6
Chapter 4 Problem #13.​ {ownership} Who controlled Blue Cross when it was formed? Did
this form of insurance generate profits for its owners?
● The Blue Cross was a non-profit organization used to provide for the local community.
Chapter 5 Problem #9.​ {industrial organization} Is an HMO able to obtain the biggest
discounts where it has a large market share or where it has a smaller market share?
● The larger the market share, the more the discount. With more physicians and services
available within the network, the more profit the company will make. Therefore, they will
be able to obtain the biggest discount.
Chapter 6 Problem #2. ​ {compensation} Do you believe that radiologists prefer to be
compensated in a fee-for-service manner, by relative value scale, on salary, or as part of a
capitated rate? Why? Why might practitioners of different specialties prefer different forms of
● I believe radiologists would prefer to be compensated on salary. Not all patients may
require x-rays or ultrasounds but most radiologists in hospitals are always on site. It may
not be practical to be paid per x-ray they take unless certain scans are more complicated
than others. Based on the field of specialty, physicians may prefer different forms of
payment such as a fee-for-service due to the level of work they are putting in. Also there
are different types of physicians and the level work they do or the level of training they
have differs. For example, surgeons may want to be paid more because the amount of
work they have to do, which could be more than what a family physician would do.
Along with being able to diagnose and prescribe, they perform surgery. Also, surgeries
can be complicated and take many hours depending on the type. That is why they may
want to be paid more than other health professionals.
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