# 1.      Several years ago, the Partners HealthCare System of Boston, MA, conducted a cost-benefit analysis of…

1.      The Partners were founded many years ago.
HealthCare System of Boston MA conducted an analysis of cost and benefits
to integrate electronic medical records technology in all areas
Their primary care practices. The total benefits were calculated.
Total costs for deciding whether or not the project should go ahead
point. The benefits that different providers offer to their customers were considered.
Three physicians are involved in the practice, and they include Physician A, Physician, and Physician B.
Both Physician A and B have marginal benefits.
computerizing their patients’ medical records. Consider this:
“Quantity” in this market as the quantity of patient records that
The physicians would computerize the patient, and this will be dependent on their consent.
price. Imagine the marginal benefit from digitizing patient files
This is by:

For Physician A: MB=25-2Q

MB=20-3Q Physician B

For Physician C., MB=15-4Q

Please use this information to derive the “market” wide demand
Partners Healthcare has a curve to digitize medical records

You can also rewrite the Demand Curve to remember that MB=P.
To assist you in this step, the demand curve is Q=a function P.

After you’ve calculated the market demand curve relevant to your situation, please
Consider the potential benefits to digitizing your medical records.
records. (Hint—to know what total market Q would be, you can set
Seek out P=0 to find the total market demand. Then, use
That would be the base for the triangle you are going to calculate.
Area; This would be the area below the market demand curve.

Please calculate the cost total for this project. We’ll
Let’s assume that there is at most two market players.
You will have to multiply their supply curves in order to get market supply
curve. Both the vendor with MC=0.25Q has different MC numbers. Please
To show the market supply, add the curves of supply.
(hint—remember we first have to write Q=function of P (which is MC)
To be able add supply curves just like we did for the demand
curves). When you are done, multiply the area below the curves.
To show the cost total of this proposal, please use the market supply curve. Please
Use the common decision rule (“Adopt Project if Total”)
benefit>total cost) to state whether the project will be adopted
The health care system.

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