Status: Adverse selection leads to: Rising insurance premiums More diversified pool of insured individuals Less moral hazard Lower risk profile of the insured population QUESTION 23 20 points Save Answer According to Dorn et al. (2008) a one percentage point increase in the national unemployment rate would increase enrollments in the Medicaid and SCHIP programs by 1 million Individuals and cause the number of uninsured to increase by 1.1 million. In light of these findings, explain the budgetary challenges state governments would face if the economy were to go into a recession and the unemployment rate were to increase. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Open Sans,s... 10pt V Ev A V L L X DQ Q 5 0 E E E x2 X2 IT The + BC V EX: i { } + Save All Answers Save and Sub Click Save and Submit to save and submit. Click Save All Answers to save all answers. 22O WORDS POWERED BY TINY QUESTION 3 10 points Save Answer You are the CFO of a large nonprofit urban hospital. The hospital board asks you to consider an expansion into a new hospital wing. The expansion cost is $2.1 million. If the economy improves substantially (20% probability) the (projected) revenues with expansion will be $6.0 million. If the economy turns worse (30% probability) the revenues will be $2.0 million. With the economy remaining roughly the same (50% probability), the revenues will be 4.2 million. Without expansion, the corresponding revenues will be $3.0 million, $1.2 million, and 1.9 million. Calculate the NPV of the expansion. Should you undertake this project? Briefly explain why. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) BIUS FA,ragraph Open Sans,S... V 10pt Ev Blocks E E x2 X 2 SIT The + BC + Save All Answers Save and Submit Click Save and Submit to save and submit. Click Save All Answers to save all answers. 22 DO DI FR F7 FAuals' premiums? 2 points Would increase premiums for the general public, but would reduce premiums for high risk individuals. Would decrease premiums for the general public, but would increase premiums for high risk individuals. Premiums would remain unchanged. None of the above. QUESTION 7 20 points Saver lines Sally's effective demand for health Dre can be described as P=25-5Q Where P is the price of an office visit and Q is the quantity of visits consumed. Now assume that Sally's co-insurance plan is no longer available. Instead, she has access to a high-deductible HAS (health savings account) plan that has a $5000 deductible and allows for $4000 in HSA. How would Sally's health care utilization change? Why? Explain your answer and illustrate on a graph. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Open Sans,s... 10pt Save All Answers Save and Subr Click Save and Submit to save and submit. Click Save All Answers to save all answers. A 22ht loss. re-improving if the resulting synergies lower costs of care to an extent that more than lower costs. A horizontal merger between two hospitals should not be allowed because the new entity will not lower prices even though it might experience A horizontal merger between hospitals is always welfare-improving because of lower average costs of production after the merger. QUESTION 5 10 points Save Spinner You are the CFO of a large nonprofit urban hospital. The hospital board asks you to consider an expansion into a new hospital wing. The expansion cost is $2.1 million. If the economy improves substantially (20% probability) the (projected) revenues with expansion will be $6.0 million. If the economy turns worse (30% probability) the revenues will be $2.0 million. With the economy remaining roughly the same (50% probability), the revenues will be 4.2 million. Without expansion, the corresponding revenues will be $3.0 million, $1.2 million, and 1.9 million. Now assume that the new space could be used to expand the ICU and surgery departments or for a maternity care center, The government just announced a disproportionate share program that would provide block grants to hospitals that provide substantial amounts of care to indigent (poor) populations. Explain briefly whether and how this will affect your decision about the type of care which will be provided in the new wing. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Open Sans, S... V 10pt Ev E V A V L L X O Q Q 5 E x2 X 2 + ABC V ( A) Save All Answers Save and Submit Click Save and Submit to save and submit. Click Save All Answers to save all answers. D 22 DO DI F7 F4Question Completion Status: Novartis made a counteroffer and bought most of the outstanding shares. QUESTION 17 10 points Save Answer You are the CFO of a large nonprofit urban hospital. The hospital board asks you to consider an expansion into a new hospital wing. The expansion cost is $2.1 million. If the economy improves substantially (20% probability) the (projected) revenues with expansion will be $6.0 million. If the economy turns worse (30% probability) the revenues will be $2.0 million. With the economy remaining roughly the same (50% probability), the revenues will be 4.2 million. Without expansion, the corresponding revenues will be $3.0 million, $1.2 million, and 1.9 million. What kind of a decision analysis technique will you use to make a decision? Explain briefly why. For the toolbar, press ALT+F10 (PC) D). ALT+FN+F10 (Mac). BIUS Paragraph Open Sans, S... V 10pt Ev E E x2 X2 SIT The + RBC V + Save All Answers Save and Sub Click Save and Submit to save and submit. Click Save All Answers to save all answers. 22P O WORDS P QUESTION 8 10 pol Sally's effective demand for health care can be described as P=25-5Q Where P is the price of an office visit and Q is the quantity of visits consumed. How many office visits would Dhe consume if her insurance includes a 50% co-insurance (so she pays 50% of each charge) and the price per visit is $10 (5 points) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph V Open Sans,s... V 10pt Ev E E X2 X 2 IT The + O + Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers 22 A Di