Part 1: Hospital

Case Study: The number of patients at Harbordale Hospital increased from 120 to 144 from Monday to Tuesday. The hospital's costs increased $720,000 to $722,000 as temporary nurses were called in to deal with the heavy patient load.

1. Explain in detail the changes Harbordale Hospital is experiencing.

2. Which is more costly, the short-run adjustment between Monday and Tuesday or a long-run adjustment?

Part 2: Long Term Care

1. How much is the average cost per day of a nursing home day?

2. On a typical day in the United States, are there more patients in hospitals or nursing homes?

3. Which type of care is growing more rapidly, hospital or long-term care?

4. What is the most rapidly growing form of LTC?