The figure given below represents demand for and supply of hospital beds in Anytown,U.S.A.,as shown by curves D and S 1 in the following figure.If the hospital receives permission to expand,its new supply curve will be S 2 .Price level P 1 is the fixed prospective payment reimbursement rate paid by Medicare to the hospital,regardless of actual cost. Figure 18.3

-Based on the information given in Figure 18.3,in order to increase its occupancy rate prior to the expansion,this hospital should:

Question

The figure given below represents demand for and supply of hospital beds in Anytown,U.S.A.,as shown by curves D and S₁in the following figure.If the hospital receives permission to expand,its new supply curve will be S₂.Price level P₁ is the fixed prospective payment reimbursement rate paid by Medicare to the hospital,regardless of actual cost. Figure 18.3

The figure given below represents demand for and supply of hospital beds in Anytown,U.S.A.,as shown by curves D and S<sub>1 </sub>in the following figure.If the hospital receives permission to expand,its new supply curve will be S<sub>2</sub>.Price level P<sub>1</sub> is the fixed prospective payment reimbursement rate paid by Medicare to the hospital,regardless of actual cost. Figure 18.3 -Based on the information given in Figure 18.3,in order to increase its occupancy rate prior to the expansion,this hospital should: A) discourage comparison-shopping by prospective patients. B) give financial incentives to doctors without privileges to admit patients. C) increase the number of beds. D) eliminate its advertising budget. E) lower its price for certain cost-effective medical procedures.

-Based on the information given in Figure 18.3,in order to increase its occupancy rate prior to the expansion,this hospital should:

Quizplus · Accepted Answer

Lowering its price for certain cost-effective medical procedures will increase the demand for the hospital’s services, leading to an increase in occupancy rate. This strategy would be more effective than increasing the number of beds, as the demand for hospital beds depends on various factors, such as population size, age structure, and prevalence of diseases. Discouraging comparison-shopping by prospective patients, giving financial incentives to doctors without privileges to admit patients, and eliminating the advertising budget may have a limited impact on the hospital’s occupancy rate.

The Figure Given Below Represents Demand for and Supply of Hospital