Imagine that you run a nursing home facility in your area. Analyze and comment on the role public policy has in the economic aspect of running this type of health services center. Compare and contrast the economic challenges and incentives this type of health care model presents. What are some of the ways in which you could inform or signal potential consumers that your nursing home is of high quality? Evaluate the social-cultural issues that influence the consumers of this type of health service. Which of your proposed methods are most apt to be reliable signals that significantly communicate to consumers so they are able to make more informed decisions?
This is a discussion question. No more than 350-400 words.
Prior to engaging in this discussion, please read Chapter 12 in the text, read the Rice (1997) and the Korda and Eldridge (2011) articles, and review any relevant Instructor Guidance. It is suggested that you also take a moment to review a few of the recommended articles to glean any potential helpful information. Opportunism in health care is especially perceptible in the health insurance markets. Consider the area in which you live, specifically your state and local communities. Evaluate the social-cultural issues that are influencing adverse selection in insurance markets. Propose some strategies for reducing adverse selection in health insurance within these markets. Develop a microeconomic model that is responsive to your local service demands. Communicate how these issues are relevant to the economics of the greater U.S. health care system. What are the future implications with the Affordable Care Act?