Restricted Formulary Hospitals are big purchasers of pharmaceutical products and have to stock many different chemical entities. However, they increasingly do not stock all. Instead, they restrict their formularies to many of the treatments in a therapeutic class but consciously exclude a few. How does this help them negotiate?
If they were to carry every drug in existence, every drug producer would know that their disagreement value was high. But because there is a chance that a specific drug will not be included in the formulary, every drug producer now faces a disagreement value of $0 . This improves the bargaining position of the hospital.
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If the quantity supplied increases by 8 percent when the price rises by 2 percent, the price elasticity of supply is ________
A) 10.0 B) 6.0 C) 0.25 D) 16.0 E) 4.0
Refer to the information below. If the firms compete, what is the equilibrium price in the market?
A small nation has three gasoline suppliers with a linear monthly market demand equal to: Q = 500,000 - 5P. Each firm's marginal cost (MC) and average total cost (ATC) curves are horizontal at $10,000 per month. A) $100,000 B) $500 C) $50,000 D) $10,000
Teenage unemployment is substantially higher than unemployment among prime-age workers because teenagers
a. are more likely to switch jobs and move into and out of the labor force. b. are less likely to be in the labor force than are older workers since many teenagers are still in school. c. are more likely to be in the armed forces, therefore, they're counted as unemployed. d. generally think they can find jobs that are available only to experienced, highly skilled workers if they just search diligently enough.
The central bank is said to monetize the deficit when it
A. prints Federal Reserve notes to satisfy the increased demand for money. B. sells government bonds from its own portfolio of government securities. C. requires member banks to buy the bonds to finance the deficit. D. purchases the bonds that the government issues.