Market Structure of Healthcare Industry

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Using course content you learned in Week 4 and Week 5, you will be researching the market structure of one of the healthcare industries listed in the assignment, discuss why you think the industry meets the characteristics of the market structure you identified and then report on how that structure impacts the demand and supply in that industry (e.g. the price and quantity of the good or service).

Part 3 of the assignment is important and requires your thoughts and discussion of how third-party payers (who sometimes control the reimbursement rates or price) may impact the industry you are researching. Part 4 is also important and pertains to this weeks discussion on government regulation. Please be sure to identify the economic rationale for government regulation (be it a specific market failure or other rationale) on the industry’s market structure you are discussing.

Pick one of the following healthcare industries listed below. Using what you have learned so far about market structure and the impact on supply and demand, write a 7 page report (double-spaced) addressing the following questions:

  1. From what you have learned in class and research you have done on-line what is the market structure of that industry (e.g perfectly competitive, oligopoly, monopoly, other)
  2. What are the implications of the market structure on the demand and supply curve and price of the services offered?
  3. What is the implication of third-party payers like private health insurance or federal programs like Medicare and Medicaid on demand and supply in this industry?
  4. How has the government intervened in the industry and what was the economic rationale for the intervention? What market failures or other rationale did they attempt to remedy? Discuss.

Choose one of the following industries to discuss the answers to the above questions:

  1. Pharmaceutical Industry
  2. For-profit health insurers
  3. Not-for profit health insurers
  4. Any physician specialty (e.g. cardiology, ophthalmology, etc.)
  5. Hospital (national Network)
  6. Small rural hospital

Written critiria must:

  • be typed, double-spaced, in 12-point Times New Roman or Arial font, with margins no wider than one inch
  • have a title page with your name, the course name, the date, and the instructor’s name.
  • all the submissions must be in your own words, with correctly cited direct quotes and paraphrases taking no more than 15% of the text.
  • have a bibliography of sources used. You may not cite Wikipedia as a research source.
  • be prepared using word processing software (Microsoft Word preferred). Projects maynot be submitted in .pdf or .docm

  • Note: Paper should be in APA format with no plagiarism

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