The central activity of many acute-care hospitals is inpatient surgery, but some of these hospitals also provide

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The central activity of many acute-care hospitals is inpatient surgery, but some of these hospitals also provide outpatient services – services for patients who come to the hospital for treatment but do not stay for any significant period before or after. Such services include outpatient surgery and outpatient treatment and counseling for drug abuse. Based on the information in the Mini-Case “Medical Economies of Scale,” is it cost effective to offer these two outpatient services? What do you think are the reasons for these economies or dis-economies of scope? 

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Managerial Economics and Strategy

ISBN: 978-0134167879

2nd edition

Authors: Jeffrey M. Perloff, James A. Brander

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