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Part 3- March The President of BooBoo Magicians realized that some of the clowns

ID: 355600 • Letter: P

Question

Part 3- March The President of BooBoo Magicians realized that some of the clowns assigned to the Standard packages were getting bored of doing the same animals over and over. Because of this, for March, BooBoo Magicians has decided to both keep the new constraint that they introduced in February - to ensure diversity-and to add a new constraint: no more than 40 packages of any given type will be offered in the month Standard 10 packages 40 packages Entertainment Packages Joyful 10 packages 40 packages Fabulous 10 packages 40 packages Min req'd Max allowed For the month of March, BooBoo Magicians has 340 bags of balloons and 360 hours of labor available (because one of the clowns quit to become a mime). Their demand is such that, whatever mix of packages they may decide to offer, are guaranteed to sell out completely.

Explanation / Answer

Two broad types of information are required for an outcomes-based P4P system to work well: (1) measures of health outcomes that are appropriately adjusted for the severity of a patient's initial illness and that can be positively affected by clinical management; and (2) information about specific treatments and clinical management that can transform people with an initially poor health status into those with better outcomes, that is, knowledge of what might be called the health production function.