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Interest group theory and nursing homes

If the interest group theory applies to hospitals, why doesn't it also apply to nursing homes? Would a doctor-owned, for-profit hospital be as attractive to physicians as a nonprofit hospital?

Can we say which are the most efficient hospitals nonprofits or for-profits? Which are the most efficient nursing homes? What qualifications apply to our present knowledge in each case? What is your view?

Explain why it is often claimed that hospitals compete for doctors rather than patients. What are some of the implications of this phenomenon, assuming that it is true?

Even nonprofit hospitals must earn a profit. Evaluate this statement.

Suppose that the licensure requirements for health care providers were eliminated. Use supply-and-demand analysis to predict what may happen to the price and quantity of health care services. Are there other considerations, in particular, mechanism that could evolve to replace licensure?

Explain and distinguish between the concentration ratio and the HHI. What ate the limitations of these measures within the context of the pharmaceutical industry?

Direct-to-consumer (DTC) advertising of prescription drugs is growing rapidly. List several products with which you have become familiar as a result of such advertising. Discuss the pros and cons of DTC advertising from the perspective of physicians and patients.

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Nursing homes are largely staffed by nurses and administrators, who have less political clout than physicians, who staff hospitals. Also, nursing home residents are not likely to be politically active, while hospitals are generally used by everyone at some point. A for-profit hospital has the additional constraints imposed by its shareholders. Doctors prefer to make their own decisions and thus will be more attracted to non-profits, where they will have more control. However, a doctor-run for-profit would avoid this problem, and should be just as attractive.

For both hospitals and nursing homes, efficiency involves getting the most out of every dollar. In general, we would expect for-profits to be more efficient, because they are under more pressure to turn a profit. However, is certainly possible for there to be for-profits which waste a great deal. It would depend upon how well they are organized and how dedicated their staff is to following directions involving cost minimization. Likewise, some non-profits could be very good at using funds efficiently. Most nursing homes are for profit, while most hospitals are not for profit. Assessing efficiency is notoriously difficult, as there is no one measure that ...

Solution Summary

Interest group theory, nursing homes, licensure requirments and DTC advertising