1. What is value-based purchasing (VBP)? Explain it in the context of a hospital; discuss why it is necessary and what healthcare issues could this strategy address. What is the impact of HCAHPS on VBP? In your opinion, what is the one greatest barrier to ensuring the quality of data used for VBP purposes?

2- suppose a genetic test is developed that can inexpensively distinguish a group of probable high cost folks from lower cost folks, at least with respect to the disease tested. Your health insurance company chooses not to use this test in your understanding practices, but your competition does. Explain what is likely to happen to your premiums and enrollments and those of your competition.

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