Healthcare Finance
tnobutu
Week7Questions.docxAnswer the following questions in a 3-page paper.
Page 1
Generally, are Healthcare providers price setters or price takers? Explain.
Which should be used by hospitals to care for non-insured poor?
Page 2
Besides using RVUs for pricing, it is becoming increasingly common to use RVUs to determine physician compensation. How do you think the use of RVUs for physician compensation will affect quality of care?
Read the article Hospital Pricing. The author does not take a very favorable viewpoint on hospital pricing. Do you think the ACA will improve the situation, or make it worse?
Page 3
Describe the following methods used to estimate the cost of individual services:
a. Cost-to-charge ratio (CCR) method
b. Relative value unit (RVU) method
c. Activity-based costing (ABC) method
Explain the essential differences between full cost pricing and marginal cost pricing strategies.
What would happen financially to a health services organization over time if its prices were set at a. Full costs?
b. Marginal costs
