Healthcare and Health Economics

The Chapter on Microeconomic Tool for Health Economic has brought me a myriad of term, factors, and theories to ponder.   I will attempt to discuss this chapter through a scenario exemplifying the information encompassed in the Chapter.
The three hospitals in Toledo have been mandated by the Government to give all citizens the HPZ vaccine shot at a maximum price of $10 due to last 3 year infection rate of the virus.   Jackson Hospital along with the other two hospitals holds a 33% share of the market.   The City as an incentive would give a $50 tax credit per (shot) there by increasing the hospital net income for the year.   Toledo has a population of 1000 and 90% of populous was fully employee and 10% were receiving some type of federal subsidy (social security, welfare, etc.).   300 hundred doses and special ear injectors were the maximum amounts produced by the local government Center for Disease Control for distribution to the Hospital and no more could be produce without the authorization to buy more equipment, hire new employees and expand the plant.
The scenario I described shows perfect competition because neither the supplier nor consumer can influence the market and the maximum amount of the product were produced based on the economic inputs.   There is no utility in the product because there is only one product to choose from but there are 3 hospitals to choose from and people may choose to go to one based on location, service and the price they decide to sale the vaccine.   The Production Possibility Frontier for the vaccination was 300 which was the maximum output for the product without injecting other resources into the economy.  
The hospitals reported 10 shots were given at a price of $5.00 dollars by each hospital during the months of January – March.   The expected demand for the first three month by the local CDC was 100.   This caused a leftward shift in the demand curve because shot were not given at the expected rate.   The hospital explained that...