Medicare and Medicaid Services

Part I The Center for Medicare and Medicaid Services (CMS) has shared their projections for National Health Expenditure for the period 2017-2026. In their forecast summary of major findings (see attached) they have identified four drivers of projection in national health spending. 1. Choose two drivers from this list of four. For these two identified drivers – a. How is the supply AND demand for hospitals affected? Use appropriate figures to identify and explain the separate effects of your two chosen drivers. (20 points) b. What would be the appropriate role for the government in controlling the projected rise in national health spending? (10 points) 2. The share of the insured is projected to decline. This decline, given growth in population, will adversely affect health care equity. What steps would you propose to improve health care equity? (10 points) 3. Given the ongoing mergers and acquisitions in the health care system, there is concern that this has provided greater market power to hospitals and this allows them to set higher prices which in turn is fueling the rise in health care spending. Use an appropriate figure to describe why concentration of market power might lead to higher prices being charged by hospitals. (10 points) 4. In order to better control the rise in healthcare spending, CMS is considering undertaking an economic evaluation. What kind of economic evaluation would you propose to better reflect cost considerations as well as the effects of interventions? Why did you choose this specific economic evaluation? (5 points) Part II The following information has been collected for Hospital X for the quantity of beds demanded and the price. In addition, Hospital X has information on the average income for the quantity demanded and information on two products, A and B. However, no one seems to know what these products are. Beds Price per Bed Average Income Price of Product A Price of Product B 250 1,000 40,000 400 400 300 800 50,000 500 300 a. Using the information in the above table, any appropriate calculations, or interpretations determine whether Products A and B are substitutes or complements to hospital beds. Provide a reasoning for your determination. (5 points) Part III The figure below contains the Annual Growth Rate of Real Healthcare Spending Per Capita, 2015-16. In this figure, there are countries that are above the Organization of European Cooperation for Development (OECD) median as well as countries that are below this median. Choose a country that is below this median and discuss organizational, financial, quality, cost AND reform initiatives that may account for this lower than OECD median annual growth rate of real healthcare spending per capita in 2015-16. To aid the identification of these country-specific initiatives, the attached International Profiles of Health Care Systems from The Commonwealth Fund is provided. This document contains an overview and discussion of several country health care systems. (20 points)                                                                                    

Sample Solution