Problem Set 6.docx - Manasa Vemuri HMP3200 Health Economics...

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Manasa Vemuri HMP3200: Health Economics and Policy Problem Set 6: Chapters 9, 10, and 14 Chapter 9: Do questions 9.1, 9.2, 9.3, 9.6, and 9.10, but answer the following for #9.10 9.1 The table lists visits for the four clinics operated by your system. You anticipate that volumes will increase by 4 percent next year. Forecast the number of visits for each clinic, and explain what assumptions underlie your forecasts. For example, are you sure that all of the clinics can serve additional clients? 9.2 Your data for the clinics in Exercise 9.1 suggest that Clinic 2 is operating at capacity and is highly efficient. Its output is unlikely to increase. Furthermore, Clinic 4 has unused capacity but is unlikely to 9.3 You estimate that the price elasticity of demand for clinic visits is -0.25. You anticipate that a major insurer will increase the copayment from $20 to $25. This insurer covers 40,000 of your patients, and those patients average 2.5 visits per year. What is your forecast of the change in the number of visits?

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