Why have economic analyses of clinical and administrative innovations become more
important?. A clinic finds that by eliminating appointments it can reduce costs. The clinic is able to eliminate some telephone staff, and physicians become more

HEALTH CARE ECONOMICS

Paper instructions:

Answer the following questions:

1. Why have economic analyses of clinical and administrative innovations become more
important?

2. A clinic finds that by eliminating appointments it can reduce costs. The clinic is able to eliminate some telephone staff, and physicians become more

productive. Patients wait until the physician is available, so there is virtually no down time. Does this analysis adopt a societal view of costs? Why might this

analysis result in a bad managerial decision?

3. Treating a patient with congestive heart failure with tPlex rather than Isother increases average life expectancy to 12.3 years from 11.5 years. The added cost

of therapy is $14,000. What is the cost per life year?

4. What does it mean to have market power? Are firms with market power extremely profitable?

5. Why might banning advertising drive up prices?

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