1. What effect do economies of scale have on the market structure of an industry?.
2. Discuss the impact of hospital consolidation on the market structure of hospital services.
3. How are the following terms important for determining whether a hospital merger will be challenged on antitrust grounds: Herfindal Index, failing hospital doctrine, economies of scale, entry barriers, and geographic and product market definition.
4) Two models of hospital behavior are the profit-maximizing and utility- or prestige-maximizing models. Describe each model.
5) What are the advantages to physicians of hospitals being organized as not-for-profit institutions?
6) The move from cost-based payment for hospital services to payment based on DRGs was expected to change hospital behavior. Discuss what you would have expected to observe as the payment method changed.
7) Why are hospitals able to charge different purchasers different prices for the same medical services?
8) How does cost shifting differ from price discrimination?
9.Within an economic framework, discuss the changing economic outlook for hospitals.