Health care economics - chapter5
Answer following questions in one page excluding questions.
4. St. Mary's Hospital owns a prime piece of real estate in the center of town. There is a small shopping center on the piece of land. Rents for each store are $4000 per month. The benefactor of the real estate, in her endowment to St. Mary's, states that the one of the stores should be operated as a clinic for the poor and be kept open 24 hours a day. St. Mary's has agree to there conditions. It hires three nurses monthly at $3000 each. Furnishings are included in the estimate of the $4000 rent. Supplies are $10 per patient; there are 800 patients a month, each of whom come in for one visit. What are the costs of operating the clinic?
5. Given the data in the book, calculate the average and marginal costs for each output level and between successive output levels.
6. If the total fixed cost is $1000 at 100 visits for a clinic, that will the marginal cost be for 101 visits?
7. City Home Care hires a furnished office at $2000 per month, telephones at $200 per month, and a secretary at $2000 per month. There resources do not change no matter how many clients are visited. Currently, CHC sees 400 patients a month, each three times (1200 visits in total). CHC uses 30 full-time nurses with their own cars, and they are paid $4000 per month each. There is a plentiful supply of additional nurses in town. These nurses can be hired almost on notice. Supplies are $20 per patient per month. What are the money costs operations CHC at its current level? Approximately how much would it cost to operate CHC at a level of 1300 visits per month?
Text Book: Economics of Heath and Medical Care Sixth Edition by Kanis L. Hicks.