Healthcare Industry Assignment

Instructions: Please answer the following questions using complete sentences. Your answers should be concise and in your own words.

Name:  

Date:  

1. Describe the four largest segments of the healthcare industry

ANSWER:

1. Hospital industry segment;
2. Physician segment;
3. Prescription drugs segment;
4. Nursing homes.

1. What are the main funding sources for each?

ANSWER:

1) For hospital industry main funding sources are: public sources (Medicare/Medicaid/other, more than 50% of total funds) and private insurance (36% of the funds).

2) Slightly different situation is with physician marketplace. Most payments come from private insurance (49% of their total funds), public programs (35% of total funds) and direct payments from patients (approximately 10% of total funds).

3) Similarly to the main physician source of funding, most payments for prescription drugs come from private insurance sources (42% of total funds), government payments (37% of total funds) and out-of-pocket payments (21% of the funds)

4) For nursing homes situation is different. The largest source of total funds is Medicaid program (41% of total funds) and direct payments from patients (27% of total funds).

1. Using Table 3-2:  on Page 37 please answer the following questions:

1. Of the per capita expenditures listed in the table, which category grew the fastest between 2000 and 2008, that is, which category registered the greatest percentage gain?

ANSWER:

Home health care segment showed the greatest percentage gain (8,8%) between 2000 and 2008, but hospital care segment had the greatest dollar growth per capita.

1.  What proportion of total healthcare costs did prescription drug costs represent in 2008?    What proportion did they represent in 2000?    

ANSWER:

In 2008 prescription drug costs represent approximately 10% of total healthcare costs, compared to approximately 8,9% of those in 2000. That means that in 2008, compared to 2000, expenditures on prescription drugs from total expenditures were higher.

1. According to Table 3-3:

        Are government sources expected to pay a higher or lower proportion of healthcare expenses in the future?

ANSWER:

For hospitals, prescription drugs and nursing homes segments it is expected for government sources to pay higher proportion of healthcare expenses in the future. But for physicians this proportion is expected to remain on the same level.