Health Care Economics
Assignment 1
Assignment
Instructions
Assignment 1 should be done after you have completed Units 1, 2, 3, and 4.
This assignment is worth 25% of your final grade. It contains 12 questions, which have been assigned various marks. Assignment 1 has a total of 100 marks.
Prepare written responses to all questions. Although your responses should be concise, ensure that you answer all portions of each question as completely as possible.
When you have completed Assignment 1, save a copy for your records, and then send it to your tutor using the assignment link.
When you receive your graded assignment, carefully review the comments your tutor or evaluator has made. This review component is an important step in your learning process. If you have any questions or concerns about the assignment evaluation, contact your tutor as soon as possible
 
Questions   
10 marks 
1.  A model of the determinants of health combines three economic variables and two economic relationships.  
For instance, the three economic variables are:  
  the amount a patient pays for a visit to a physiotherapist (P);  
  the number of times the patient visits the physiotherapist (V); and   
  the length of time it takes the patient to recover from a rotator cuff (shoulder) injury (D) (max. ? 365 days).  
The two economic relationships are:  
  the number of visits (V) ? 18 ? $0.09 (P).  
In other words, if the price is zero, the patient will make 18 visits in order to receive treatment for this injury. If the price is $200, the patient will make zero visits.  
  the number of days to recover (365 ? D).  
In this case, the number of healthy days (D) in the next year will be 180 ? 5V. If the number of visits is zero, the patient will have 180 healthy days and it will take 185 (365 ? 180) days to recover from the rotator cuff injury. If the number of visits is 18, the patient will have 270 [180 ? 5(18)] healthy days, and the time to recover from the injury will be…