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Sanford Health Individual Project

Sanford Health Individual Project
University of Phoenix
Economic For Managerial Decision Making (ECO)
533
Alan Beideck
October 02, 2007

Executive Summary

Table of Contents

Title Page------------------------------
Executive Summary------------------
Introduction----------------------------
Product Pricing------------------------
Costs------------------------------------
Market Structure----------------------
Economic Forecast--------------------
Conclusion-----------------------------


Sanford Health Individual Project
To obtain maximum profits, Sanford Health USD Medical Center needs to look at many factors that affect supply and demand. These factors include the determinants of supply and demand and how they affect the hospital, the laws of diminishing marginal utility and diminishing returns and their consequences, and the economic forecasts. Appling these factors to their oligopoly market structure can maximize profits by predicting how the market may change in the future and making appropriate adjustments in the pricing of the product and costs associated with the running the hospital.
Product Pricing
Utility
According to McConnell and Brue (2005), utility is "the satisfaction or pleasure a consumer obtains from the consumption of a good or service (or from the consumption of a collection of goods and services" (p. G-25). Sanford Hospital USD Medical Center's (formerly Sioux Valley Hospital USD Medical Center) mission is "dedicated to the work of healing". The physicians, nurses, and support staff take it upon themselves to help the hospital meet this mission by providing service excellence to all patients, family, and visitors. When patients are in the hospital they expect and deserve to receive high quality care, to be treated with respect, and to be kept informed on treatments and options. This includes showing compassion, empathy, and respect to both patient and families during their vulnerable times. Sanford has been...