Morgan State University Institutional Affiliation Discussion Please read the two discussions carefully and response to them with a short response the most

Morgan State University Institutional Affiliation Discussion Please read the two discussions carefully and response to them with a short response the most important thing is to ask questions when you response. Two questions at least regarding to what they wrote for Each response. Although all four areas including competition, honesty, information, and property rights all contribute to well-functioning systems, my IP will focus on information as it relates to economic efficiency.
AirBnB (an oligopoly), for example, is an online marketplace in which information regarding potential vacation rental homes are readily available for consumers view and compare. Owners of these
homes set prices they feel are fair when compared to competing homes of similar size, number of bedroom/ bathrooms, style, and location. Thus, all information is available and accessible to
participants, making it easy to understand what options are available in the marketplace. Before AirBnB, the only accommodation options for people traveling were hotels, yet, AirBnB has expanded
consumer’s options and increased competition not only between competing rental homes, but also with hotels while simultaneously increasing the supply of available accommodations to travelers.
There was an obvious lack of innovation in the hotel industry, so AirBnB came along providing better options for consumers (especially for short-term travel) and had significant leverage by offering
superior accommodations for less money than a typical hotel stay. Further elaborating on the concept of information and well-functioning systems, AirBnB allows consumers to leave reviews (mainly
regarding quality of the home, interactions with the seller, etc.) which makes even more information available for others to make more informed decisions in the economy. Using AirBnB, consumers can
compare side-by-side homes of the same caliber given all information provided by owners and based on which home they choose to pay for (price) shows how valuable that information proved to be.
For example, if someone is searching for a rental home in San Diego, California and needs an entire house with 3 bedrooms and 3 bathrooms, they have the ability to filter a specific search criteria and
potentially question a seller as to why their home is so much more expensive than similar ones nearby. Likewise for a seller, if there’s a popular convention taking place one weekend (like Comic-con) and
an individual decides to book a last minute trip to attend, if all other hotels and AirBnB’s are booked, sellers might take advantage of scarce supply and increased demand and raise the price of their
AirBnB’s. In this scenario, sellers have the upper hand and can take advantage of more negotiating power.
Discussion 1
Tying a lack of information back into economic efficiency, I will further elaborate on an AirBnB example. If central air conditioning was neglected from an AirBnB home description, and instead, a
consumer arrived expecting central a/c only to discover one a/c unit in the window, they may be extremely dissatisfied and request a refund from the seller. Therefore, the seller would be at a loss
because they would need to issue a refund, yet the consumer would benefit from getting money back due to a lack of information posted when the initial transaction occurred. Thus, the consumer
cannot be better off without making the seller worse off.
Grant writes that “markets work best if they are well structured”. One of the criteria that is essential to a well-functioning market is competition. Health care, particularly acute care hospitals, are very
structured in their functionality and in most states, competition between hospitals and health systems is cutthroat. There are universal, mandatory screening questions and numerous elements of data
capture regulated by the Centers for Medicare and Medicaid and Joint Commission. You must meet numerous outcome expectations, reduce hospital acquired infections and other conditions to avoid
monetary penalties or reap a monetary reward. Most organizations vie for patients and volume, and market themselves unabashedly. Volume combined with reliable outcomes equals profitability and
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nd under the global based reimbursement (GBR), revenue is capitated and there is an all-payor system. This makes for an interesting dynamic between the “buyers and
….. an all payor model, each insurer, whether private or public pays the hospital the same fee for any given service regardless of the facility. In theory, this could be interpreted as
an intent to reduce competition, as your revenue is defined based on your patient population, volumes, and services rendered, but does not change as dynamically as those inputs. The delicate balance
comes when the organization must operationalize its care delivery in such a way that they become as efficient as possible to garner a larger piece of the revenue that is ‘left over’ after all the care is
delivered, therefore competitive. This ‘left over’ revenue then becomes the catalyst for further competition. Are new services added at the acute care facility, or is there expansion of non-regulated
services managed by the hospital that generate additional revenue? discussion 2.
Buyers of health care continue to be free to choose with facility to complete their health care transaction. This then leads to a new kind of competition, their insurance will pay the same price regardless
of where they go for given services, so the hospitals then embark on the overall patient experience competition which also has monetary rewards and penalties based on the consumer’s subjective
assessment of the experience. In Maryland there are also corporations that have teetered on the tightrope of market domination, University of Maryland, Johns Hopkins. There is limited market entry in
acute care hospitals in the state. While this limited market entry is not driving up costs, it does reduce the choices available to the consumer for the immediate receipt of care due to the breadth of
organizations under the umbrella of these systems. Additionally, these giants of health care also have specialization on their side. Information then becomes crucial. This is immediately available to the
consumer on sites such as www.hospitalcompare.com Consumers and competitors alike can seek out and find information on what makes a hospital a great place to go, or to stay away from. All four
elements of essential to a well-functioning market are in fact applicable to health care.

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