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1). A patient visits a clinic. She incurs $10 in travel costs and has a copaymen

ID: 1179246 • Letter: 1

Question

1).  A patient visits a clinic. She incurs $10 in travel costs and has a copayment of $20. The

clinics total charge is $60. The clinic spends $9 to bill the insurance company for the visit

and uses resources worth $51 to produce the visit. The insurance company pays the clinic

$40 and spends $11 to process the claim. Describe the cost of the visit from the perspective

of the patient, the clinic, the insurer, and society.


2).  Your hospital is considering opening a satellite urgent care center about five miles from your

main campus. You have been charged with gathering demographic information that might

affect the demand for the centers services. What data are likely to be relevant?

Explanation / Answer

cost of visit for patient=10+20+60=90$

cost for clinic=51+9-40=20$

cost for society=51-40=11$

Clinicconsidering opening a satellite urgent care center about five miles from your

main campusIt may be helpful to clinic but not patient.So,it is irrevelant with respect to patient.

But it may be helpful to clinic and society.I hope you understood