Health Management And Leadership Question

Health Management And Leadership Question

Executive MPH Program
PBHL 600ES – Health Management and Leadership

Salud Digna Assessment
NAME:________________________________________
Figure 1
1. Line D0 above represents consumer demand for Salud Digna’s optometry
services in her satellite clinics. A shift in market demand occurs when factor(s)
other than price affects quantity demanded. For Figure 1, describe a scenario
that could explain an outward shift in consumer demand for optometry
services provided by SD’s satellite clinics from D0 to D2.
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Figure 2
2. Line S0 above represents the market supply for dialysis services in Mexico
A shift in market supply occurs when factor(s) other than price affects
quantity supplied. For Figure 2, describe the scenario presented in the Salud
Digna case that could explain an outward shift in the market supply of
dialysis services from S0 to S1.
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__________________________________________________________
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3. Assuming that the theory of supply explains behavior, if Mexico Americano’s
costs for MRI scans drops because of reduced resource costs for equipment
and material in the market for MRI scans, will that lead Salud Digna to:
a. Increase the volume of MRI scans provided to its patients
b. Decrease the volume of MRI scans provided to its patients
c. Maintain the same level of MRI scans provided to its patients
d. Cannot be determined
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Figure 3
4. In Figure 3 above, dotted lines show various price points and corresponding
demand for Pregnancy Tests among fertility aged Mexican women. Shade the
triangle(s) that would indicate shortage in the supply of pregnancy tests.
5. If in Figure 3, E correctly depicts a point of equilibrium price, quantity
demanded and quantity supplied, does it represent a model of perfect
competition:
a. YES
b. NO
c. Cannot be determined from this figure
6. Assuming that the theory of demand explains behavior, if a consumer has a
budget constraint does this mean that that he/she:
a. Has to balance indifference for goods that satisfy utility
b. Has limited ability to move to a higher equilibrium price if current prices
increase
c. Cannot increase quantity demanded without a positive change in income
d. All of the above
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Figure 4
7. Figure 4 shows supply (S) and demand (D) for diabetes tests. If the graph
correctly depicts a competitive market for all patients, does point P represent:
a. Efficiency
b. Breakeven
c. Profit Maximization
d. All of the above
Figure 5
8. Using Figure 5, if Salud Digna forgoes profit maximization to meet consumer
demand for Pap tests, at what level of (Q) will it produce:
a. Q 1
b. Q 2
Demand for Pap Tests
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Figure 6
9. The hypothetical Price Elasticity of Demand (PED) for screening exams relative
to the price of travel for rural Mexicans to a Salud Digna clinic is 3.5; meaning
that for every 10% increase in the price of travel, the demand for screening
exams decreases by 35%. Identify the Elasticity line in Figure 6 that describes
the PED of screening exams relative to travel costs.
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10. If the PED for an electrocardiogram performed in a hospital is 4.1 and new
employees with the government who are required to get an EKG must pay the
out-of-pocket difference not covered by public insurance; would a new
employee most likely: (Circle the letter of your response)
a. Use Salud Digna outpatient EKG services as substitute for hospital care
b. Use Salud Digna outpatient EKG services as a complement to hospital care
c. Neither of the above
11. Match the Mexican health insurance plans to following comparable US health
insurance programs: Federal Employees Health Benefits Program, Tricare
(Department of Defense Military Health System), ACA subsidized health
insurance.
SEDENA _________________________
Seguro Popular _________________________
ISSSTE _________________________
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12. Using Exhibits 3 and 4 below, for 2008, calculate the Total Profit Margin, Debt
Financing Percentage, Current Ratio and Days Cash on Hand. SHOW ALL WORK
Permission granted from Harvard Business Publishing to post Salud Digna financial statements
Green = Operating Revenues Red = Operating Expenses Blue = Non-operating Gains
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13. The data below compares the financial ratios of Quest Diagnostics (the
world’s largest, for-profit, medical diagnostics firm) to the US medical diagnostics
industry average. In the Salud Digna case, the organization needed to decide
between remaining as an NGO or converting to for-profit corporation.
Using the data, compare these ratios to the financial ratios you calculated for
Salud Digna and present an argument in 100-150 words for whether Salud Digna
should stay an NGO or convert to a for-profit entity.
Quest Diagnostics
US Industry
Average
Total Profit Margin 11.0% 6.2%
Debt Financing Percentage 36% 33%
Current Ratio 1.47 1.74
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14. In 2006, Salud Digna demonstrated a profit margin of -2.20%. If we were to
use a benchmark of 3.1% (half of the US Industry Average) and revenues of
$2,284,326, what level of expenses would Salud Digna have needed to meet in
2006 in order to achieve a Total Profit Margin of 3.1%? SHOW ALL WORK
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15. In 2012, Salud Digna was approved by the International Development Bank
for a $7 million social impact bond issuance to finance the development of new
clinics in Mexico. If an investor purchased $10,000 in these bonds at a coupon
rate of 7.5% earned semi-annually, what will be the bond proceeds for this
investor at the end of 10 years when the bond matures? SHOW ALL WORK