The Economics of Health Care Delivery

Go to Course: https://www.coursera.org/learn/health-economics-us-healthcare-systems

Introduction

### Course Review: The Economics of Health Care Delivery **Platform:** Coursera **Instructors:** Professors Ezekiel Emanuel and Guy David **Duration:** Self-paced **Overview:** The Economics of Health Care Delivery is an insightful and comprehensive course designed to unravel the complexities surrounding health care systems, particularly in the United States. Led by esteemed professors Ezekiel Emanuel from Penn Medicine and Guy David from the Wharton School, this course provides participants with a robust framework for understanding the intricate economic principles that govern health care delivery and insurance. ### Course Structure The course is divided into four distinct modules, each focusing on key components of health care delivery and economics. #### **Module 1: Historical and Structural Foundations** In the first module, learners are introduced to the historical backdrop of the American health care system. This module covers essential topics such as the evolution of health care providers, advancements in health care technology, and the history of insurance systems. A focus on Medicare and Medicaid illustrates the importance of government programs in increasing health care access. The exploration of the Iron Triangle of Health Care—quality, cost, and access—establishes the main areas of tension in health care policy. This foundational understanding is crucial for anyone looking to navigate the complexities of health care delivery. #### **Module 2: The Economics of Health Insurance** The second module delves deeper into the mechanics of health insurance, explaining what determines insurance premiums and the reasons behind the demand for insurance. The discussion on moral hazard and asymmetric information is particularly enlightening, providing a lens to critically analyze how cost-sharing arrangements like deductibles and copays influence consumer behavior. By the module's conclusion, participants will appreciate the critical challenges of adverse selection and how they can be addressed. #### **Module 3: The Role of Providers** Moving forward, the third module shifts focus to the economic roles played by physicians and hospitals. It provides an overview of various payment methods and the strategies hospitals employ to maximize profit. The analysis of the Health Care Value Chain and the Principal-Agent Problem sheds light on the economic dynamics at play between physicians and hospitals. This module effectively equips participants with the tools to understand how to optimize the performance of health care organizations while maintaining patient care quality. #### **Module 4: Beyond Traditional Care** The final module broadens the scope to include alternative health care providers, exploring post-acute care models such as hospices. It emphasizes the shift toward holistic and comprehensive care, alongside the principles of vertical integration. Learners will also gain insights into government regulatory frameworks and significant antitrust legislation, which is vital for anyone involved in health care management or policy-making. ### Recommendations This course is highly recommended for individuals seeking to deepen their understanding of health care economics, including policy-makers, health care professionals, and students in related fields. The blend of theoretical insights and pragmatic applications makes it particularly useful for those looking to engage in health care strategy, management, and regulation. **Pros:** - Expert instruction from renowned professors. - Comprehensive coverage of historical and current health care issues. - Engaging content that combines theory with real-world applications. - Flexible learning pace suitable for busy professionals. **Cons:** - Some prior knowledge of economic principles may enhance the learning experience. - The focus is primarily on the American health care system, which may limit applicability for international students. ### Conclusion Whether you are a health care professional, a student, or a policy-maker, The Economics of Health Care Delivery on Coursera is a valuable resource that offers in-depth knowledge and practical understanding of the economic forces shaping health care. By providing a well-rounded perspective on the systematic components of health care and insurance, this course prepares participants to navigate and influence the evolving landscape of health care delivery effectively.

Syllabus

Module 1

This module was designed to give you a deeper understanding of the history and structure of the American health care system. You’ll begin by examining the history of health care providers and improvements in health care technology throughout the years. Then you’ll look at the different evolutions of insurance throughout history, the purpose of health insurance, and the inherent issues and solutions within the concept of insurance. You’ll learn key aspects of Medicare, Medicaid, and other government programs that increase access to health care. Then, you’ll evaluate the Iron Triangle of Health Care—quality, cost, and access—and the main areas of focus and tension for health care policy. By the end of this module, you’ll have a richer understanding of the growth of health care providers, insurance, and government programs and their impact on health care access.

In this module, you’ll be introduced to the concept of insurance, and focus more closely on the structure and components of insurance. You’ll also learn what determines the size of an insurance premium and why people demand health insurance. Through analyzing the problem of moral hazard and asymmetric information, you’ll accurately measure the impact of cost-sharing arrangements, such as deductibles and copays. By the end of this module, you’ll be able to identify why people are willing to pay insurance, how companies quantify how much people are willing to pay for insurance, and effectively discover solutions to both asymmetric information and adverse selection.

In this module, you’ll examine the role of the physicians and hospitals in the health care ecosystem. You’ll explore the different types and payment methods for both physicians and hospitals, and how hospitals utilize these methods to maximize profit. Through analyzing the Health Care Value Chain and Principal-Agent Problem from Economics, you’ll be able to establish the unique importance of physicians in the health care markets as a perfect agent, and the different approaches and implications of this relationship. You’ll also gain a general overview of the characteristics that define hospitals, the effects of different trends on the decline in number of beds in hospitals, and two common hospital practices to address this issue: cost shifting and cross subsidization. By the end of this module, you’ll be able to better understand the role of physicians and hospitals in health care markets and employ best practices and maximize profit for your health care organization.

In this module, you’ll explore a range of other health care providers outside of physicians and hospitals. Through the examination of different examples of post-acute care such as hospices, you’ll develop a better understanding of the shift toward holistic care and support in post-acute care providers. You’ll also discover the benefits of vertical integration, and how you can better allocate resources and offer competitive pricing. Finally, you’ll be introduced to the methods of government intervention in health care and learn more about various antitrust legislations such as the Sherman Act, the Clayton Antitrust Act, and Federal Trade Commission Act. By the end of this module, you’ll have a deeper understanding of the health care ecosystem, and how various providers of health care affect each other within that system.