Question

The four major functions of the healthcare delivery system in the United States are financing, insurance, delivery, and payment. How do you feel statistics will help administrators manage cost and deliver quality healthcare?

Answer 1

Answer: Uses of statistics in each of this field is enormous: However I have mentioning few below here for different fields.

In Financing: There is risk involved in dropping down of interest rates or correct combination of portfolio selection calculating risk adjusted profits. SOmetimes we need to predict a time series model in financing etc

Insurance: Insurance company people wants to know who all people are more likely to claim the insurance in future and given them less premium, so forecasting methods can be used in this. They might also want to know what is the expected profit given the probabilities of death of person at different ages etc.

Delivery: They might need to estimate the shipping cost from one city to another city, again this is a kinda time series model, having inflation every year which is purely statistics involved

payment: Here also lot of data is being used to understand the amount of cash flows.

In all of the above industries, in one way or the other, the administrators mange cost and deliver quality health care to their respective industry