1. The BBNW company has developed its own electronic health record system, which would instantly and costlessly provide information about BBNW-insured patients currently available in the system already in use at Asclepius Hospital. BBNW is now considering shifting the form of payment for Asclepius Hospital from the current prospective, diagnosis-related group system to a per-diem (daily) rate. How would such a change affect the hospital's decision-making? Why is behavior affected by payment in this circumstance? Would the existence of the new electronic health record system affect your decision? If so, how? 2. From the Asclepius Healthcare System's state-of-the-art website: (1) "Asclepius is the only healthcare system in Freedonia listed at the top of every quality report" (2) "The Asclepius Heathcare System, with hospitals in five of Freedonia's most important cities, is known everywhere as the largest, nonprofit vertically-integrated, staff model, group practice hospital system in Freedonia." How might the structure of the Asclepius Healthcare System contribute to its quality standings? 3. Freedonia has suffered from periodic epidemics of Economitis, a highly-contagious childhood disease that can have debilitating effects in 1/1,000 people who contract it. There is a vaccine that protects against most (but not all) cases of Economitis, but the injection is painful for two days. The disease is also more common among people who ride bicycles (though no one knows why). The government of Freedonia is considering making the immunization free for all Freedonian families with incomes below the Freedonian household median income. Would this plan make economic sense? How would it affect immunization rates and patterns? The International Health Organization has proposed a program that would immunize almost everyone in the world against Economitis, eliminating the disease completely. How would that affect the cost of Economitis in Freedonia?

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1 Shifting the form of payment for Asclepius Hospital from a prospective diagnosisrelated group system to a perdiem rate would likely affect the hospitals decisionmaking in several ways Under a perdie... View the full answer