Reference no: EM132657498
You are a health economics and outcomes researcher at a large insurance plan in the United States (US). Your supervisor is concerned about the growing number of total hip arthroplasty (THA) procedures being performed. The newer devices have demonstrably better survivorship and combined with implants in a younger population, economic concerns have arisen regarding the newer devices. Your supervisor has asked you to develop a 10-yr cost analysis including all anticipated replacements and revisions over the time-frame.
You have assembled the following information from your plan data and literature review:
Item Value
cohort growth rate 5.00%
hypothetical cohort 24,000
high annual failure rate 1.00%
low annual failure rate 0.25%
hospital payment hip replacement $10,000
physician payment hip replacement $1,400
hospital payment revision $13,000
physician payment revision $1,900
DVT rate with revision 10.00%
infection rate with revision 5.00%
additional costs of complications DVT $10,000
additional costs of complications infection $45,000
discount rate 3.00%
initial discount factor 1
Question 1: Prepare presentation for your supervisor on the cost impact of THA. The presentation shall, at a minimum, contain:
- All calculations,
- Scenario analysis based on high and low discount rate, 0% to 10%
- Results to be expressed in present value. Be sure to include annual and total costs broken down by initial hip replacement, and revision surgery
Question 2: Discuss the steps in your analysis, why you took those steps, and recommendations
|
Required rate of return on hk common shares
: HK's capital structure consists of a single long-term debt issue with a face value of $20 million and 2 million common shares with a current market price of $15
|
|
Make the journal entries to record the transactions
: Make the journal entries to record the following transactions on Sarasota Company's books under a perpetual inventory system
|
|
Find how many units must the company sell to attain
: Find how many units must the company sell to attain its target income? Given the cost and pricing structure for the company's product
|
|
What is the long-run average volatility
: Suppose that the parameters in a GARCH(1,1) model are a = 0.04, b = 0.94, and w = 0.000003.
|
|
Prepare presentation for supervisor on the cost impact
: Prepare presentation for your supervisor on the cost impact of THA. The presentation shall, at a minimum, contain Scenario analysis based on high and low
|
|
Create the user interface using the given details
: Create the user interface shown below in WindowBuilder. When the user clicks on the "Display Records Button, read all the records from the product table.
|
|
What is the implied one-year forward rates
: The current yield curve for default-free zero-coupon bonds with face value of $1000 is as follows: (i)one-year zero, yield to maturity 10%, (ii)and two-year zer
|
|
Determine the accounts receivable turnover ratio
: Allowance for Doubtful Accounts - $5,000 for 2018 and 5,500 for 2019. Determine the accounts receivable turnover ratio to one decimal place
|
|
What is mpi times-interest-earned ratio
: What is MPI's times-interest-earned (TIE) ratio? Do not round intermediate calculations. Round your answer to two decimal places.
|