Consequently 5000 of Show more A major employer has just added health insurance coverage for its employees. Consequently 5000 of your patients will pay a $30 copayment rather than the list price of $100 per visit.
Consequently 5000 of Show more A major employer has just added health insurance coverage for its employees. Consequently 5000 of your patients will pay a $30 copayment rather than the list price of $100 per visit.
These patients average 2.2 visits per year. You believe the price elasticity of demand is between ?0.15 and ?0.35. What is your forecast of the change in the number of visits? Why is the demand for healthcare products usually inelastic? You estimate that the price elasticity of demand for clinic visits is ?0.25. You anticipate that a major insurer will increase the copayment from $20 to $25. This insurer covers 40000 of your patients and those patients average 2.5 visits per year. What is your forecast of the change in the number of visits? You are a manager for a regional health system. Using an estimate of the price elasticity of demand of ?0.25 how much will ambulatory visits change if you raise prices by 5 percent? Show less
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