HSM 340 Week 4 Discussion Question 1 and 2 ( Financial Sources and Financial Theories and Concepts) | GRADED

HSM 340 Week 4 Discussion Question 1 and 2 List the major nonhospital & nonphysician sectors of the healthcare industry The Health Care Sector encompasses two main industry groups. The fir st includes companies who manufacture health care equipment & supplies or provide health care related services, including distributors of health care products, providers of basic health-care services, & owners & operators of health care facilities & organizations. The second regroups companies primarily involved in the research, development, production & marketing of pharmaceuticals & biotechnology products. The Pharmaceutical sector is an industry that develops, produces, & markets drugs or pharmaceuticals licensed for use as medications.Pharmaceutical companies arelowed to deal in generic or brand medications & medical devices. They are subject to a vaiety of laws & regulations regarding the patenting, testing & ensuring safety & efficacy & maketing of drugs. The biotechnology sector is refers to a medicinal or diagnostic product or a vaccine that consists of, or has been produced in, living organisms & may be manufacturedvia recombinant technology recombinant DNA is a form of DNA that does not exist naturally It is created by combining DNA sequences that would not normally occur together. Thistechnology has a tremendous impact on meeting the needs of patients & their families as it ot only encompasses medicines & diagnostics that are manufactured using a biotechnological process, but also gene & cell therapies & tissue engineered products. Today, the majority of innovative medicines, whether manufactured using biotechnology or via a chemical synthesis like a traditional small molecule medicine, as well as many diagnostic products, are made available by applying modern biotechnology in their development & manufacturing processes. 2nd Response Non-hospital & non-physician sectors of the healthcare industry are: Nursing homes 1. Medical groups 2. Health plans also other sectors of the healthcare industry involves Medical insurance, medical services & managed care & Pharmaceuticals- Over-the-counter (OTC) drugs & Drug Stores, Prescription drugs, Biopharmaceutical drugs, Generic drugs, Dietary Fiber Supplement, Vitamin & Supplement, Cough & Cold Medicine. Describe the two major theories used for the detection of out-of-control costs. This section lists options that can be used to view responses. The two major theories that are used to detect out-of-control costs are: 1. Classical Statistical Theory & 2. Decision Theory Application: Classical statistical Theory uses the control chart as its primary tool, to monitor a physical process This study source was downloaded by from CourseH on :58:32 GMT -05:00 by comparing output observations with predetermined tolerance limits. This chart helps as a means to determine which cost variances to investigate. The Statistical process control serves as a tool for research & health care improvement. The control chart provides researcers & practitioners with a method of better understanding & communicating data from heath care improvement efforts. Decision Theory provides the basis or outline for directly integrating the probability of the system eing out of control & the cost & benefits of investigation into a definite decision rule. The payoff able is the pivotal tool used in this theory; placing emphasis on costs & benefits. This table has he primary objective to minimize the actual cost for a given situation; requiring estimates of the robabilities for the two states, in control & out of control; both are required.