Radiology Services Supply and Demand – “What Health Reform Means for Radiologists”

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Radiology Services Supply and Demand – “What Health Reform Means for Radiologists”

QDRAD = f(Prad, Income, Gov’t Reg, Tastes, Demographics)

QSRAD = f(Pinputs, #of firms, Gov’t Reg, Technology)

The University of Iowa Hospitals and Clinics are currently experiencing changes due to the variables mentioned in the article and shown in the supply and demand functions. Demand is relatively flat for radiology services. This is primarily due to government regulation. Most radiology services now require preauthorization, which requires primary physicians to call the third party payer to approve the service. This has decreased the amount of radiology services ordered.

D is demand before preauthorization and D1 is demand after preauthorization. D is demand before preauthorization and D1 is demand after preauthorization.
We have also seen decreases in radiology services due to the recession. As individual incomes are decreasing, they are delaying care that is not urgent.

D is demand before the recession and D1 is demand after the recession.

D is demand before the recession and D1 is demand after the recession.

Tastes are also becoming a factor in health care and radiology demand. With competitors offering free parking, quick and convenient testing with fast procedure and result times it decreases our demand when we do not offer those services.

D is demand when we had free parking and D1 is the demand when we implemented pay parking.

D is demand when we had free parking and D1 is the demand when we implemented pay parking.

One item that is increasing the demand for services is the aging population in Iowa.

D is demand before baby boomers hit 50 and D1 is demand after baby boomers hit 50. D is demand before baby boomers hit 50 and D1 is demand after baby boomers hit 50.

The price for radiology service affects both supply and quantity demanded. Even though the hospital and physicians sets their own prices, which increase...
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