Micro Short Run-Long Run Production Functions: Revision Notes

4. Explain how the revenue from medical (pharmacy) supplies is currently handled for profit and loss reporting purposes. Is there a problem with the current system? Is there a better way of reporting this revenue? If so, what is it?

The health facility in this case study experienced several problems and issues beyond possible solution efforts by the time. One of the main problems is based on the perfect way of handling the various challenges attributed to a shift from the hospital’s fee-for-service in the case of managing care environment. Besides, some local physicians were loyal to Dr. William and had the necessary flexibility and availability to assist the doctor in various ways, but today they are no longer available to assist the doctor towards the achievement of his medical and societal mission. The physicians were always available and loyal to the doctor and they could volunteer their efforts especially in cases of physician shortages in the health center. The physicians cannot afford the time they once used for volunteering activities in the health facility to assist Dr. Williams (Swayne, 2008). The reason behind this problem is that the physicians have now been employed by various managed health care organizations. Others have been involved in various contractual agreements such that the partners prohibit them from working with the health care facility. Although the health care facility has a few small groups or individuals offering primary care, these individuals and small groups are still struggling to survive in the industry. As such, the majority of them cannot

While the demand of healthcare need increasers the United States facing a physician shortage. In recent years the number of nurse practitioners (NPs) and physician assistants (PAs) has significantly increased and they are taking the part in providing healthcare cervices to the majority of patients. I believe nurse practitioners and physician assistants can practice independently from doctors and be free of oversight. Expanding the scope of NPs and PAs is essential to overcome the healthcare crisis we are facing; it will increase patient satisfaction and stabilizing the healthcare economy.

This paper will look at the impact of Affordable Care Act on supply and demand in healthcare. The goal is to show if there is equilibrium of supply and demand since the Affordable Care Act was enacted. This has been done by looking at a variety of articles such as The Impact of the Affordable Care Act on the Health Care Workforce. The Affordable Care Act has created provisions to address some of the supply shortages. Through the provision it will take time for the full effects to come to light. This paper will provide valuable information regarding the Affordable Care Act impact on supply and demand.

What are some examples of ancillary services in health care? How do these ancillary services support the health care industry?

One of the strengths…. New physicians are hired on a two year contract with a fixed salary and benefits. After the completion of their two year term, they can then choose to either buy a share of Medical Associates and become stakeholders, or terminate their relationships with the practice entirely. Over the course of the past 5 years, Medical Associates’ staff has changed dramatically within the organization. As registered nurses retire or resign, they have been replaced with medical assistants. On five recent occasions, when a Registered Nurse assigned to a senior physician resigned, the senior physician demanded that the registered nurse assigned to a staff physician (non-shareholder) be reassigned to him or her and that the new Medical Assistant be hired to fill the vacancy with the new staff physician. This ad hoc system of job switching has caused a great deal of internal turmoil between the senior and junior physicians and has lead to the subsequent resignation of two Registered Nurses who did not want to be reassigned. Another issue of long term concern involves the financial structure of the corporation. At a recent Board retreat, a consultant furnished a recommendation that the corporation retain more of its annual earnings before sharing earnings with the shareholders. This report was very controversial.Dr. Eason, the Medical

2. Analyze the available MD and NP capacity.  How effective is the clinic in matching supply and demand?

Question 3: Identify all costs associated with this venture. Categorize these costs as fixed or variable.

1.) "Revenue hours" represent the key activity that drives costs at Salem Data Services. Which expenses in Exhibit 2 are variable with respect to revenue hours? Which expenses are fixed with respect to revenue hours?

The PPACA will also have a direct negative impact on the medical field as a whole. By 2025 there is expected to be a shortage of nearly 52,000 physicians. This, coupled with the number of office visits increasing over 100 million times, will put incredible strain on the healthcare system (“The Patient Protection”). This will cause wait times for medical treatment to be greatly increased. Patients will be more likely to go to the emergency room for minor treatments, such as coughs due to colds, thus causing patients with real emergencies to wait even longer. Also, there will be no competition for patients. This competition is what encourages health care workers to excel in their specialties and to become better. This may even cause fewer people to choose to pursue a career in the medical profession (Ireland).

Healthcare reforms including Obama Care, formally named the Patient Protection and Affordable Care Act greatly impacts physicians and nursing shortages. There are several provisions which could direct impact physicians and nurses through incentives for potential recruitment, grants, training and retention. Through potential initiatives, the act may indirect effects that may question or present new reimbursement alternatives and models of health care delivery options. Healthcare reforms will allow millions of additional working as well as no working Americans to obtain healthcare coverage and this

The overall health care industry has undergone fundamental change over the last decade. Most of the changes have occurred within the underlying business operation of the healthcare industry. Legislation in particular has had a profound impact on the health care industry. First, due to the Affordable Care Act of 2010, the nursing profession is undergoing a fundamental shift in regards to the patient experience. The U.S. health care system is now shifting the focus from acute and specialty care to that of primary care which requires a shift in business operations. Also, due primarily to that aging of the baby boomer generation, the need for primary car overall is shifting and will be needed heavily in the future. The last 10 years in particular has seen an increasing influx of retiring baby boomers that subsequently need care. A positive impact on the ACA legislation is that more individuals are now insured. As such, the need for primary care will also increase over subsequent years, particular within the minority population. This patient centric approach will require more care predicated on specific communities in a seamless manner. Furthermore, primary care physicians will be in high demand over the coming years.

In the administration of medical services in the United States law and regulation now control much of professional life. (p. 586)

i. Why was Dakota’s existing pricing system inadequate for its current operating environment? (Hint: Consider why ABC might be a good idea)

Competition drives innovation and ultimately leads to the delivery of better healthcare. Competition has played a vital role in shaping the delivery of healthcare in the United States. Competition results in lower prices and broader access to health care and health insurance. Competition among and between hospitals and physicians intensified with the development of managed care organizations. In addition to putting pressure on costs, managed care plans have pressured providers to use shorter hospital stays and to offer alternative outpatient treatments (Botti, 2007). This led to lower costs and an increase in choice without sacrificing quality. Lower costs and improved efficiency has made health insurance more affordable and available. Another benefit of competition in health care is the innovation in healthcare technology (i.e. endoscopic surgery, anesthetic agents available in ambulatory surgery centers).