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Economics
of Health Care
(ECO 206 3.0 Cr)
Health Services
Course Description
This course uses economists' tools to examine
and analyze the health care industry in the
United States. Specifically, the course explores
the demand for medical care, the supply of
health care services, the supply of and demand
for health insurance, and issues of rising
costs for both suppliers and consumers. In
addition, the course examines the extent and
impact of competition in various health care-related
markets such as those for hospital services,
physicians and other health care workers,
and long-term care. Focus is also placed on
policy issues such as national health insurance
and other aspects of the role for government
in health care. This course will help students
understand the economic aspects of health
care systems and teach them how to analyze
this complex and critical aspect of personal
and public health.
Learning Objectives
After completing this course, students will
be able to:
• Apply the concepts of "supply
and demand" and market competition to
the health care
sector of the United States
• Analyze economic trends in American
health care
• Critically evaluate economic arguments
used to debate issues in health care
• Assess the economic and equity aspects
of different forms of policies related to
health
care
Breadth of Assignments
This course utilizes a variety of assignment
types in exploring the topics of Health Care
Financial Management including reading assignments,
both online and textbook based, individual
assignments involving internet research and
case studies of Middleboro, an online simulated
community, journal and essay writing assignments,
analytical review graded exams, and group
projects involving discussion board questions
and thought collaboration.
Required Resources
Feldstein, Paul J., (1999). Health Care Economics
(5th ed). Albany, New York: Delmar Publishers.
ISBN: 0-7668-0699-5
Economics of Health Care
Health Services
Module/Topics
Module 1: Economics of Medical Care
• Course introduction
• Student introduction
Module 2: Rising Costs and Demand
for Health Care and Medical Insurance
• Measuring changes in:
- the price of medical care
- the demand for health care
- the demand for medical insurance
Module 3: The Supply of Medical
Care
• Supply
• Market structure
• Market performance
• Evaluation of economic efficiency
in supply
Module 4: Market Competition and
the Market for Health Insurance
• Demand side of market for health
insurance
• Supply side of market for health
insurance
• Performance of the health insurance
market
• Competition in medical care
• Managed care
Module 5: The Physician Services
Market
• Structure of the physician services
market
• Performance of the physician services
market
Module 6: The Market for Hospital Services
• The market for hospital services
• Various models of hospital behavior
• Non-profit competition performance
Module 7: Health Care Labor Market
• Manpower shortages and surpluses
• Measurement and empirical estimates
• Proposed policies to correct imbalances
• The market for physician manpower
Module 8: The Role
of Government in Health and Medical Care
• Government intervention
• Market imperfections and failures
• Redistribution
• Legislative marketplace
• Economic theory of government
• Specific legislation
Module 9: National Health Insurance
• Economic and political framework
Module 10: The Market for Long-Term
Care Services
• Demographic trends
• Demand for long-term care
• The supply of long-term care services
• Government policy and the nursing
home industry
• Financing long-term care
Module 11: Summary
• Summary
• Finish final project
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