CASE STUDY 02: DEMAND FOR AND SUPPLY OF PHYSICIAN SERVICES

Due at 11:59 p.m. Central time on Feb 27, 2011 – 15 points

Case Study 02 consists of both calculations and an analysis and interpretation of the results of
the calculations. The topic involves the demand for and supply of physician services in a
county in Missouri. There is a .pdf file (CS02 Instructions.pdf) providing step-by-step
instructions for performing the calculations; however, the numbers in the .pdf file are for
illustrative purposes only and not the data for your county. There is also an Excel file, which
includes a template spreadsheet and a data spreadsheet to be used in performing the
calculations.

The results of these calculations form the foundation for the narrative part of the assignment.

When completing the Excel part, you are to use formulas (don’t enter rounded numbers or
values into the spreadsheet for calculations). In the spreadsheet, you need to determine the
total number of physician visits your population will need, the average number of visits
needed per capita, as well as the number of physician visits needed from each physician
specialty. You also need to determine the number of visits your physicians can supply and
then determine the shortage or surplus of physicians in each of the physician specialties. All
the necessary data for the calculations are provided on a data sheet in the template file,
although data manipulation is necessary to obtain appropriate breakdowns.

The data that you will need for the calculations are provided in a series of data tables in the
data sheet on the template file. Because secondary data are used in the analysis, the formats
of the various data elements are not consistent; therefore, adjustments must be made to
consolidate the data into usable forms. Instructions on the steps necessary to get the data
into the proper format are included in the .pdf file called CS02 Instructions.

Based upon the results in your spreadsheet, provide a discussion of the characteristics of your
county in terms of demand for and supply of physician services. Discuss how your county’s
demand for physician services differs from the national per capita utilization rates and discuss
possible factors contributing to that difference. Your data divide the population into different
income groups. Based on these data, to what extent does your county follow the prediction in
the general demand theory (e.g. would it have the same shape of a general demand curve if
you plot the date by income groups and doctor visits?) What may be the factors that
contribute to the differences between theory and empirical data? How will you comment on
your county’s demand with the concept of elasticity?

Also discuss the ability of your physicians to meet the needs of the population in the county.
In this respect, you should assume that you are the newly hired Director of Planning for the
county, and that you have responsibility for the total population in the county. Your response
should be an analysis and interpretation of the data in the spreadsheet and not just a general
discussion of physician market issues.

Be sure to support/justify your conclusions with economic theories and evidence as

appropriate, derived from your calculations and from peer-reviewed sources.

Please see the file “Writing Assignment Rubric” for the specific expectations regarding the
Analysis and Interpretation Brief. The usual conventions regarding proper acknowledgments
(footnotes, references, citations) of data, concepts, ideas, conclusions, and information are

HMI 8524: Case Study 02 Page |1 Spring 2011

expected. The form and style of the brief is to follow those of the American Psychological
Association (APA). The Brief is to be double spaced with appropriate delineation of
paragraphs. The narrative is to be approximately 500 words in length (± 10%), excluding the
title page and references.

Case Study 02 is to be submitted electronically to http://hmi.missouri.edu/moodle/. In

naming your file for submission of Case Study, use your last name and the assignment type
and number as an identifier (e.g., Leung CS02, where your name is substituted for Leung).
Remember, the case study is to reflect your individual effort. The case study assignment is
worth 15 points.

HMI 8524: Case Study 02 Page |2 Spring 2011