Answers to “Test Yourself” Questions
- The four forces are demographic changes, morbidity in the nonelderly population, spending patterns for the elderly, and the complexity of the health care market.
- The five drivers are case mix, volume, resources per case, cost per resource unit, and fixed costs.
- The idea behind the health care food chain is that one entity's expenses represent another entity's revenue. Expense reductions for one organization (such as a health maintenance organization [HMO]) therefore result in revenue reductions for another (such as a hospital).
- The term value-based purchasing expresses the idea that payers in health care need to consider benefits as well as costs when making a decision about purchasing. ...