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The Economics of Health and Medical Care.

  1. Mortality rates for males (per thousand)from Coronary Heart Disease(CHD) vary as follows in a British Study:

Professional 66
Managerial 76
Skilled 103
Semi-skilled 116
Unskilled 166

Describe what the data above indicate about the link between social status and mortality rates. In your analysis, be sure to calculate the percentage variations between these mortality rates to reinforce your arguments. (6 marks).

  1. A health plan provides 70% coverage of therapeutic massage therapy. Each massage therapy treatment costs a total of $120. Under this plan, clients used 750 hours of massage therapy services in a 3 month period. After some analysis of usage and breakeven levels, the plan changed their coverage to 60% coverage of therapeutic massage therapy. As a result, in the next 3 month period, clients used 580 hours of massage therapy services. Given the above, calculate the following: (Show all your work for full marks)
    a) Calculate the cost to the plan with the original level of coverage, and the cost to the plan with the new level of coverage.(4 marks).
    b) Calculate the arc elasticity of demand for massage therapy among the clients, based upon their usage and cost. Explain the behaviour of the clients based upon this calculation.(6 marks)
  2. Prudent Insurance provides extended health benefits as well as dental, optical and prescription drugs to employees of EKSWI Corporation. EKSWI pays 50% of the insurance coverage. The insurance plan has a 23% copayment clause and a loading factor of 67%. Each subscribe uses $580 of dental services, $200 worth of optical services, $650 worth of prescription drugs, and $325 worth of extended health benefits in a year. Given the above, please calculate the annual and monthly cost of the insurance premiums to the individual subscriber. Please show all of your work clearly and completely to earn full marks.( 10 marks).
  3. In 2015 a full service hospital with 250 beds had 17,850 admissions. The average length of stay per patient was 4.9 days. Full capacity is 100%. Using the above figures, calculate the following:
    a) Total hospital capacity(measured in bed –days) (3 marks )
    b) The 2015 occupancy rate(in percentage, to two decimals). (3 marks)
    c) The hospital takes measures to reduce the length of stay and increases admissions to 19,500. If this raises the occupancy rate to 97.5%, please calculate the new, shorter length of stay . (4 marks)
  4. (a)Carefully explain the difference between a change in quantity demanded and a change in demand, and discuss the underlying causes of each. (5 marks)
    (b) List and describe 5 factors that could cause an increase in demand for dental services.(5 marks)
  5. List and describe the three major tasks of economics in the context of health economics( 6 marks).
  6. Distinguish between health care and medical care by first defining these two terms and then contrasting them. ( 4 marks).
  7. In the provision of medical coverage to a community, explain the term “flat of the curve medicine” and explain how this relates to analyzing the costs and benefits of the provision of health services. (5 marks).
  8. When calculating the slope of a line, explain the difference between a direct relationship between two variables and an inverse relationship between two variables. (4 marks).
  9. In a population of a particular community of 25,000 who were alive at the beginning of the year, there are 1300 people who died during the year. Answer the following two questions based upon the above: (show your work for full marks)
    a) Mortality rate ( 2 marks)
    b) Number of life years that existed during the year (3 marks).
  10. In the Canadian health care system, please list and describe the major economic units, and also classify them as consumers, suppliers, third parties or regulators.(10 marks).
  11. Physician supply and services provided are shown below. Please calculate resource availability and utilization expressed in terms of rates per 1000 of both physicians per thousand population as well as physician services per 1000 population. Also comment on trends between 2014 and 2016.(10 marks)
    Year Population Physicians Medical Services
    2014 3,250,000 4,522 25,275,500
    2015 3,275,000 4,634 25,850,000
    2016 3, 300,000 4,715 26,325,000

Sample Solution

population found this perplexing due to the cultural belief in “two-spirit” or what can be considered a third gender (Morgensen. 2012). With the colonization of the indigenous population Europeans were able to instill their beliefs about gender and sex, eventually this became a tool in their quest for dominance (Manning, 2019). Additionally it can be suggested that it created the foundation of a hierarchical system in the Americas and the Caribbean society knows toady. In short the institution of gender was the beginnings of colonial power around the world. With the concept of hierarchy forced on the indigenous colonizers were able to justify gendered violence, because of the man over woman ideal. Gendered violence played an important role in the shaping of colonial societies and establishing power and it continued to be a tool of retaining power during post-colonisation and modern day conflict. It is clear that even in modern day society there is a large amount of inequality throughout the world in terms of men’s and women’s opportunities, and unfortunately the inequalities can become amplified during times of conflict. During World War 1 80% of casualties were soldiers, during the Vietnam War 80% of casualties were civilians mostly women and children (Fagan,1999). This is an example of an extremely concerning trend and that is that women and children have become tools and pawns in conflicts to gain or retain power on both international and national levels. As instability in security increases the risk of sexual violence also increases all across the board for men, women, and children. The use of sexual violence is used a psychological tactic to control and weaken communities through loss of social cohesion. Colonization and war both contributed to the objectification and demoralization use of sexual violence to carry out the task at hand. We see this with early colonizers who were quick to brutalize native women and exploit their newly taken power. A more modern examples would be the conflicts in Rwanda, Uganda, and Bosnia–Herzegovina, which saw sexual violence used as a systemic tool of war; but also can be used to control populations in times of peace (Close, 2011). The use of sexual violence reinforces gender stereotypes in societies both developed and developing, especially the idea that conflict is a male dominated.
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