Concept of economies of scale


Question 1:

A. How does the concept of economies of scale relate to the trend of larger group practices?

B. How does the concept of economies of scale relate to the success or failure of insurance companies?

C. How does the current system of financing health care affect the number of uninsured or underinsured people?

D. Why could this vary state-by-state? How would a national market help this?

E. Consider the connection between economies of scale on an organizational level for health care and economies of scale on an organizational level for insurance schemes.

Question 2:

A. In health care, most physicians and facilities are paid for services rendered instead of the quality of the performance, known as pay for performance. What other ways can physicians be paid? Explain.

B. Discuss how (1) current trends in consumerism may change the way health care professionals are paid and (2) the possibility of health care reform may change the way health care professionals are paid. Do you think it will get to a point where they are only paid for performance? Support your position.

References and citations are required. Please include references and citations.

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Microeconomics: Concept of economies of scale
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