Economic Tools Concepts Paper Write a 1 050 1 400 word paper economic tools concepts evaluate a current issue 'situation exists todays health care industry Some examples economic tools concepts 'supply demand curves marginal analysis elasticity

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Currently a case of 12 packs is worth $1,750.00. (Daron 2006) In this pack you have 1,200 test kits which would be use for 400 patients because each patient gets three test kits. In a large hospital it is a common practice that when someone comes in for GI bleeding to order this test. If the price of test kits increases it will make it more sensitive to be use because the cost of the product will be greater than the demand of the product which in turn will decrease the usage of the test kits and hurt the company that supplies the test kits to the medical laboratories (Anna 2005).

Impact of New Companies Entering the Market

Due to strict government regulations, shortage of qualified technical staff, and fierce competition from large nationwide laboratories, new laboratories do not frequently enter the laboratory marketplace (Eddy 2007). Most pathologists who are entering the marketplace would prefer to join an existing laboratory or become a staff pathologist at a hospital instead of undertaking the enormous task of starting a new laboratory. There are primarily three large laboratory systems in the United States that generate the greatest portion of laboratory revenues (Daron 2008). These three laboratories are very difficult to compete against due to the seemingly unlimited capital money they have to invest in existing and new technologies. New laboratories to the marketplace must overcome the obstacles that the large laboratories present, and that can be a daunting task. Profitability in the laboratory industry is generally dependent upon the laboratory having a high volume of testing, so laboratories entering the marketplace must establish trust with referring clinicians in order to garner their share of the marketplace (Daron 2006). Aggressive marketing campaigns must be initiated to garner enough accounts to stay in business.

Competition

Competition in the laboratory marketplace does increase when an existing laboratory chooses to specialize in a certain area, or when an existing laboratory diversifies with new technologies, methodologies, or improves its current service in a significant way (Anna 2005). Currently in the laboratory marketplace, competition of this type is seen in the form of clinicians who are hiring pathologists to be their employees and read their pathology specimens. These clinicians,…[continue]

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"Economic Tools Concepts Paper Write A 1 050 1 400 Word Paper Economic Tools Concepts Evaluate A Current Issue 'situation Exists Todays Health Care Industry Some Examples Economic Tools Concepts 'supply Demand Curves Marginal Analysis Elasticity" (2011, April 08) Retrieved August 30, 2015, from http://www.paperdue.com/essay/economic-tools-concepts-paper-write-a-1-50397

"Economic Tools Concepts Paper Write A 1 050 1 400 Word Paper Economic Tools Concepts Evaluate A Current Issue 'situation Exists Todays Health Care Industry Some Examples Economic Tools Concepts 'supply Demand Curves Marginal Analysis Elasticity" 08 April 2011. Web.30 August. 2015. <http://www.paperdue.com/essay/economic-tools-concepts-paper-write-a-1-50397>

"Economic Tools Concepts Paper Write A 1 050 1 400 Word Paper Economic Tools Concepts Evaluate A Current Issue 'situation Exists Todays Health Care Industry Some Examples Economic Tools Concepts 'supply Demand Curves Marginal Analysis Elasticity", 08 April 2011, Accessed.30 August. 2015, http://www.paperdue.com/essay/economic-tools-concepts-paper-write-a-1-50397

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