Business Economics of the Health Care Industry

2.5 credits

HSM 420 uses the tools of managerial economics (such as cost-benefit analysis, organizational architecture, and the role of incentives) to analyze the business institutions, practices, and regulation of the health care industry. The course covers the health care value chain including: i) purchasers of health care services (e.g., government, private insurers, and employers); ii) providers of health care services (e.g., hospitals and physicians); and iii) manufacturers of medical devices, pharmaceuticals, and supplies. We seek to understand: the US healthcare system in an international context; the role technology plays in driving change in the industry; the fiscal crises that have spurred health care reform; how health care providers have used mergers, product line management, and information technology to address contemporary management challenges; the next stages in the evolution of managed care as embodied in Accountable Care Organizations and consumer-driven health care; important trends in health care delivery including quality measurement and reward, disease management, and pay-for-performance; and the adoption and financing of medical technology by health care organizations.