Most states restrict the number of hospitals in a given geographic area under "Certificate of Need" (CON) laws. These laws require any new hospital facility to provide evidence that there is a demand for its facility that is not currently being met by the existing healthcare facilities in that geographic market. Identify the market inefficiency that these CON laws are trying to fix.
How does restricting the number of hospitals correct this inefficiency? Explain briefly.
Answers
Answer: The answer is provided below
Explanation:
The certificate of need, is a legal document in the United States that is required in many states and federal jurisdictions before proposed expansion, acquisitions, or the creations of healthcare facilities will be allowed.
a. The market inefficiencies which will be eliminated by the certificate of needs laws are that:
The absence of certificate of needs laws will have resulted in an unregulated market competition among the hospitals. This competition could result into medical providers over-investing in medical equipments and facilities. This will lead to an increase in the demand for the equipments which in turn, leads to rise in the equipments costs and the burden caused by the rise in price is shifted to the patients in form of high prices which could lead to exploitation.
b. Restricting the number of hospitals can correct this inefficiency because the laws will help reduce competition among the hospitals which will help reduce demand for healthcare equipments.
This will help in pushing the market toward equilibrium over time whereby healthcare delivery are more affordable to people.
Related Questions
A buyer uses a perpetual inventory system, and on December 7, it contacts its supplier to report that some of the merchandise purchased on December 5 was defective. The seller offered to reduce the merchandise price by $400. The buyer agreed to keep the defective merchandise under those terms. Complete the buyer's necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Ski West, Inc., operates a downhill ski area near Lake Tahoe, California. An all-day adult lift ticket can be purchased for $85. Adulit customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from December 1 through April 30. Ski West expects its season pass holders to use their passes equally throughout the season. The company's fiscal year ends on December 31. On November 6, 2018, Jake Lawson purchased a season pass for $450.1. What will be included in the Ski West 2018 Income statement and balance sheet related to the sale of the season pass to Jake Lawson? Complete this question by entering your answers in the tabs below. 2. When should Ski West recognize revenue from the sale of its season passes?3. Prepare the appropriate ournal enteries that Sky West would record on November 6 and December 31.
Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company’s planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) 350 Revenue ($420.00q) $ 147,000 Expenses: Wages and salaries ($11,500 $130.00q) 57,000 Supplies ($4.00q) 1,400 Equipment rental ($2,200 $25.00q) 10,950 Insurance ($3,900) 3,900 Miscellaneous ($510 $1.44q) 1,014 Total expense 74,264 Net operating income $ 72,736 Required: During May, the company’s actual activity was 340 diving-hours. Compute the flexible budget of activity.
Suppose there is a policy debate regarding the United States’ imposing trade restrictions on imported steel rods. Read the following scenario and answer the question that follows. The president of the United States argues that the United States should threaten to impose a tariff on Chinese steel rods in order to induce the Chinese to remove its tariff on American cars. Which of the following justifications is the pundit using to argue for the trade restriction on steel rods? a. National-security argument b. Infant-industry argument c. Jobs argument d. Using-protection-as-a-bargaining-chip argument e. Unfair-competition argument
Answers
Answer:
C. $5,150
Explanation:
Calculation for what will be the value of interest payment at the end of fifth year in real dollars
First step is to calculate the Interest amount per year
Interest amount per year = 100,000*6%
Interest amount per year = $6,000
Now let calculate the value of interest payment at the end of fifth year in real dollars
Value of interest payment in 5th year in real dollars = 6,000/(1+3.1%)^5
Value of interest payment in 5th year in real dollars= 6,000/1.164913
Value of interest payment in 5th year in real dollars= $5,150
Therefore the Value of interest payment in 5th year in real dollars will be $5,150
Answers
Answer:
Medicaid can provide cost-sharing assistance. Depending on your income, you may qualify for the Qualified Medicare Beneficiary (QMB). If you are enrolled in QMB, you do not pay Medicare cost-sharing, which includes deductibles, coinsurances, and copays.
Explanation:
The Centers for Medicare & Medicaid Services (CMS) are responsible for implementing laws and various forms of guidance, sub-regulatory guidance operational updates and technical clarifications passed by Congress related to Medicaid and the Basic Health Program to explain what states and others need to do to comply.
There are 4 “metal” categories of health insurance plans: Bronze, Silver, Gold, and Platinum. These categories show how you and your plan share costs. Plan categories are independent from quality of care. The total costs for health care include a monthly premium bill to the insurance company and out-of-pocket costs, which have a big impact on your total spending on health care and sometimes more than the premium itself as the out-of-pocket maximum is the amount you have to spend for covered services in a year, and only after you reach this amount, the insurance company pays 100% for covered services; and the deductible, which is the amount you have to spend for covered health services before your insurance company pays anything (except free preventive services). The Plan and network types allow you to use or not doctors or health care facilities. Plans & prices are issued according to the income and household information and they determine the copayments and coinsurance, which are payments you make each time you get a medical service after reaching your deductible
There are plans that have very low monthly premiums, but have high deductibles and pay less of your costs when you need care.
If you qualify for "cost-sharing reductions" (CSRs), Silver plans may offer good value because of a lower deductible. The income determines where your estimate falls in the range for cost-sharing reductions.
A Gold plan or Platinum plan generally have higher monthly premiums but pay more of your costs when you need many doctor visits or regular prescribed medication.
Answer:
^^^^
Explanation:
Answers
Answer:
Yes
Explanation:
Metalcrafters is right by claiming that the contract was discharged. The text makes a list of the impossibilities that allow for a contract to be discharged. “That the occurrence made performance impossible. The doctrine of impossibility relieves nonperformance only in extreme circumstances” (Twomey & Jennings). Samet’s death in the automobile accident qualifies Metalcrafters for the doctrine of impossibility. He was the only one capable of making the product and died unexpectedly.
Final answer:
The death of a party does not usually discharge a contract, unless it is a 'personal service contract' that relies heavily on the unique skills of that individual. In this case, Metalcrafters may claim the contract was dependent on Samet's unique skills, thereby making it impossible to fulfill the contract upon his demise. However, the specific determination would rely on the contractual terms and its interpretive application in law.
Explanation:
The subject matter of this question is related to contract law, specifically the aspect of 'impossibility of performance' as a potential defense for breach of contract. In the circumstance described, Metalcrafters had a contract with Lamar to design a new product, which was then considered impossible due to the unfortunate death of Samet, a pivotal individual to this task.
Under normal circumstances, death does not discharge a contract. If a party promises to perform a task that can be performed by others, the contract generally remains in effect even if that party becomes unable to perform. However, where the contract is considered a 'personal service contract'—one that relies on the unique abilities or skills of a particular individual—performance of the contract may be impossible if that individual dies.
Whether Metalcrafters could argue that this was a personal service contract may depend on the specific terms of the contract and how much it relied on Samet's unique skills. This is a complex area of contract law and could depend on further aspects that aren't covered in the question. In other words, it's not exactly a straightforward 'yes' or 'no' matter.
Learn more about Contract Law here:
#SPJ3
Answers
Answer:
Dr Cash 105,600
Dr Compensation Expense 14,400
Cr Common Stock 10,000
Cr Paid-In Capital – Excess of Par 110,000
Explanation:
KL Corp Journal entry
Dr Cash 105,600
Dr Compensation Expense 14,400 (10,000*12*12%)
Cr Common Stock 10,000 (10,000*1)
Cr Paid-In Capital – Excess of Par 110,000
(10,000*(12-1))
$420,000.
$400,000.
$430,000.
Answers
Question: What percentage of the variation in overhead costs is explained by the independent variable
Answer: 82.8%
Explanation:
= 0.848 (84.8%), the explanation of variation in Y from the X regress
Question: What is the total overhead cost for an estimated activity level of 60,000 direct labor-hours
Answer: $410,000
Explanation:
The equation resulting from this regression analysis is:
Total overhead = Estimated fixed cost + Estimated variable cost per labor hour x Labor hours
= Intercept estimate + Coefficient estimate on independent variable x 60,000 DLH
= 110000 + 5 x 60000 DLH
= 110000 + 300000
= 410000
Here is the full question with the appropriate tables.
Cortez Company is planning to introduce a new product that will sell for $108 a unit. The following manufacturing cost estimates have been made on 20,000 units to be produced the first year;
Direct Materials $700,000
Direct Labor $720,000 (= $18 per hour × 40,000 hours)
Manufacturing overhead costs have not yet been estimated for the new product, but monthly date on total production and overhead costs for the post 24 months have been analyzed using simple linear regression. The following results were derive from the simple regression and provide the basis for overhead cost estimates for the new product.
Simple Regression Analysis Results.
Dependent variable-Factory overhead cost-Independent Variable-Direct labor hours Computed values
Intercept $ 120,0000
Coefficient on independent variable $ 5.00
Coefficient of correlation .920
R² .828
What percentage of the variation in overhead costs is explained by the independent variable? 82.8% 91.1% 99.4% 74.5% None of the above.
What is the total overhead cost for an estimated activity level of 60,000 direct labor-hours?
$410,000.
$420,000.
$400,000.
$430,000.
Answer:
R² = 82.8%
$420,000
Explanation:
Given that:
R² = .828
The percentage of the variation in overhead costs explained by the independent variable in Y from the X regressor = %
= 82.8%
Given that:
direct labor-hours = 60,000
To calculate the Total overhead cost; we have:
(Total overhead) to be = Estimated fixed cost + estimated variable cost per
labor hour × labor-hours
= Intercept estimate + Coefficient estimate on
independent variable × 60,000 direct labor-hours
= $120,000 + ($5 × 60,000) direct labor-hours
= $120,000 + $300,000
= $420,000
∴ the total overhead cost for an estimated activity level of 60,000 direct labor-hours = $420,000.
Answers
Answer and Explanation:
In order to answer the question, we first need to understand the concept of Keynesian theory of great depression. John Maynard Keynes, says that during recession or depressed economic conditions, governments should increase their spending in order to create a correct balance of demand and avoid high unemployment. Once the recession and market forces are stable, by that time the full employment is reached and now the deficit could be repaid. Congress could bring the taxes back to its original state as the people are now back to stable condition. This would help to meet the deficit requirement.