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Prior to engaging in this discussion, please read Chapters 6 and 9 in the text and review any relevant Instructor Guidance. It is suggested that you review the recommended articles to glean any helpful information. Articles are at the bottom. In this discussion, you will be taking on the role of an associate director of a hospital who is considering the proposed opening of an urgent care clinic about 20 miles from your main campus. You have been charged with gathering demographic information that might affect the demand for the new clinic and creating a presentation that will be delivered to the hospital CEO. Consider what data might be relevant and why. What would you want to show the CEO to prove that this project would be feasible for the organization? As with the “Finance, Risk, and Cost” discussion in Week Two, you will be creating a five-minute presentation using PowerPoint and Jing, Screencast-o-matic, or an alternative program with audio to present your findings on the feasibility of this project to your CEO.
Today’s health care landscape is placing new importance on the economics of health care. Reflecting on the exercises you have completed thus far and incorporating information from the text, analyze how demand theory applies to public policy and the economics of health services. What elements, responsive to the specific health care service demands of your given population, would you want to present as you develop a microeconomic model based on this proposed opening of an urgent care clinic?
Your PowerPoint presentation slides must include the following information:
Your basic microeconomic model of the projected service/project
An analysis of the role that public policy plays in terms of your provision of health care services
A justification of your model
The relevance of the current financial data in terms of the projected outcome of the project
A compare and contrast discussion of the economic challenges and incentives related to your project
Once you have created your PowerPoint presentation, use Jing, Screencast-o-matic, or an alternative program with audio to create a screencast of your presentation with voiceover. Include a title for your presentation in the description box when you publish your screencast. The hospital CEO has limited your presentation time to three to five minutes, so you will need to incorporate as many characteristics of an effective speaker as you can within this timeframe.
Block, D. (2013). Disruptive innovation: Contributing to a value-based health care system. Physician Executive, 39(5), 46-52. Retrieved from the EBSCOhost database.
The article discusses how hospitals can use disruptive innovation to improve health care quality, safety and outcomes by reducing the costs of healthcare delivery. The author says health care delivery in the United States is at least 20 years behind the development of other industries in the country.
Ellis, R. P., & McGuire, T. G. (1993). Supply-side and demand-side cost sharing in health care. Journal of Economic Perspectives, 7(4), 135-151. Retrieved from the EBSCOhost database.
This article focuses on the supply side and demand side of cost sharing in health care. Ellis & McQuire (1993, p.137) states that ”economists and others concerned with health care policy have debated the meaning of “demand” in health care. After all, as Arrow (1963) emphasized early on, the relationship between patients and their physicians (and other health care providers) involves agency, information, trust, and professionalism. A key unresolved issue in health policy is the magnitude of this provider-induced demand, and how it is determined.”
Heroman, W. M., Davis, C. B., & Farmer, J. L. (2012). Demand forecasting and capacity management in primary care. Physician Executive, 38(1), 30-34. Retrieved from the EBSCOhost database.
The article examines how a practical approach to demand forecasting and capacity management helps primary care clinics run smoothly and efficiently. The authors state that a demand forecast determines the gap relative to the capacity of the practice to provide health care which can affect all the patient-centered medical home (PCMH) principles.