ECON 3720

The Economics of Health Care Markets

Course Description

Course information provided by the Courses of Study 2014-2015.

Health care systems and health policy are undergoing rapid change as medical technology advances and costs rise. Debates concerning the delivery, regulation and financing of health care have intensified. This course uses basic economic tools to analyze central questions in health care today, as well as fundamental issues in health policy: For example, what is the current role of the government in the health sector, and what should it be? What is the social insurance role of the government, and how is it played out in policies that impact the health of the population? How is health insurance structured, and what are the implications of having employers be the providers of private health insurance? This course is about applying economic tools of policy analysis to gain insight into the workings of the health care system and to analyze current issues in health policy. It is mainly a U.S. institutions-based course, with some international comparisons. It should be of interest to students preparing for all kinds of careers in health care, and to others with an interest in important public policy issues.

When Offered Fall.

Prerequisites/Corequisites Prerequisite: PAM 2000, PAM 3100, or equivalent.

• Identify the flow of resources in the U.S. health care system, how purchasers pay for their services, and how providers obtain their revenues.
• Understand the value of health and health care.
• Evaluate how health care resources should be allocated.
• Describe the structure of the health insurance industry, explain the incentives facing insurers, understand the strategies they use to compete and their impacts on social welfare.
• Understand the demand for medical care, and what role providers play in shaping this demand.
• Explain the economics of managed care and describe how competition works in health care.

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