True or Flase 1) True or false, Small area variations in healthcare spending are

Question

True or Flase

1) True or false, Small area variations in healthcare spending are generally regarded as an indication that there is some source of inefficiency in healthcare delivery. True or false: if the health production function does not have diminishing marginal returns, then it is possible that geographic variations in health spending could actually be an efficient outcome.

2) True or Flase, According to the Dartmouth Atlas of Healthcare, most of the variation in Medicare spending across different regions in the US can be explained by the underuse of important preventative care services in many areas of the country.

Explanation / Answer

2) Variation can be due to two reasons, either because of bias or requirement. So, when necessary preventive care services are underused then there is a need to spend more on those areas which increases the variance.

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