HSM3101

Provides a pragmatic, applied understanding of health economics with the specific aim of increasing the effectiveness of management in the health care industry. As effective management requires understanding and application of the economic incentives and choices of the various agents in that industry, this course reviews the health economic principles that drive the behavior of providers, insurers, and patients. It provides an overview of the structure of the hospital, provider, and pharmaceutical and medical device industries and their responses to economic forces given the incentives faced by the various economic agents--patients, providers, payers, and health care manufacturers (i.e., the pharmaceutical and medical device industries). This includes both an examination of private and government insurers and the ways health system actions are influenced by the policies of private and government insurance. Health equity is an issue that applies broadly in the health care industry, and as such, it has implications for its management. Similarly, health care management must prepare for the potential impact of health care reform on the health care industry so that it is positioned to thrive in a dynamic environment. Accordingly, this course reviews various reform approaches and their implications for the health care industry.
Prerequisites: None, but successful completion of a course in introductory microeconomics is strongly recommended.