Economics 387. Lecture 1 Introduction to Health Economics Tianxu Chen. The course. Class Meets : Tue,Wed,Thu 9:30-12:00 Class location : B41 Psychology Office Hours : Wed 1:00-2:30, or by appointment Office location : 429 Economics E-mail : firstname.lastname@example.org. Text materials.
Introduction to Health Economics
The text materials will be:
The Economics of Health and Health Care, by Sherman Folland, Allen C. Goodman, and Miron Stano (Seventh Edition)
Thursday, July 19th – 30% of course grade
20% of your grade
Ellis and McGuire, 1986, Provider Payment under Prospective Payment Journal of Health Economics.
Shen and Melnick, 2005, Is Managed Care Still An Effective Cost Containment Device?
Ruhm, Chris, 2005, Healthy Living in Hard Times, Journal of Health Economics, 24(2005) 341-363
Ellis, Randall P. and Michelle M. Miller, 2008,“Provider Payment Methods and Incentives” in Heggenhougen, Kris (ed.) “Encyclopedia of Public Health”
Source: Centers for Medicare and Medicaid Services: http://www.cms.gov/NationalHealthExpendData/25_NHE_Fact_Sheet.asp, accessed August 8, 2011.
Health economics has evolved from applied work in more general economics. An example
Source: Keeler, Manning, and Wells (1980) for mental health care; Keeler and Rolph (1988)
for medical care.
Perhaps no other sector features insurance so prominently. In 1960 about 56 percent of all personal health care expenditures were paid out-of-pocket; 44 percent by third party payers and/or government. By 1990, over 76 percent paid by third party payers.
4. Role of Non-Profit Firms
6. Need and Equity
7. Government Subsidies and Public Provision
Health economists have also inherited from economics a set of concepts and questions that have proven to be particularly relevant to the policy problems that have emerged in health during the past three decades. Scarcity, substitution, incentives, marginal analysis, and the like were ‘‘just what the doctor ordered,” although in many cases the ‘‘patient’’ found the medicine bitter and failed to follow the prescribed advice. (Fuchs, 2000, p. 148)