Overview
Prompt: Appendix 5A Modeling Cost Effectiveness – Markov Models
o Requirements: Write a paper responding to the following.
▪ Markov Models are key tools for calculating expected time spent in a state, such as active life expectancy and disabled life expectancy.
▪ Predicting costs in the healthcare environment is challenging for a lot of medical professionals and organizations. Specifically, healthcare administrators want to assure that the delivery of services is appropriate as identified by federal government guidelines, rules, and regulations.
▪ A vital starting point is to provide the context necessary to provide a cost model that considers the general factors of healthcare encounters, such as patient days, diagnosis, treatment, and other related costs that can be used to describe the complex problems of healthcare.
▪ Describe a scenario of how Markov Models can assist in predicting costs, model complex diseases, or incorporate time and disease progression.
▪ The paper must be three (3) pages, APA-compliant, double-spaced, and in 12-point font. The paper should include references from the assigned reading(s) and any additional scholarly sources used to prepare the paper.
Please include an abstract