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Health Care Economics
Woman pointing during a presentation

Health Care Economics

Explore the Economic Forces Shaping US Health Care

Taught by Harvard Medical School faculty, Health Care Economics, a Harvard Online course, provides insights into the interactions between industries in the US health care sector and teaches what economic forces are shaping health care.

Brought to you by: Harvard Online and Harvard Medical School

Apply Now

What You'll Learn

The course will be delivered via HBS Online’s course platform and immerse learners in real-world examples from experts at industry-leading organizations. By the end of the course, participants will be able to:

Play an Introduction to Health Care Economics video
Play an Introduction to Health Care Economics video
Go to Course Syllabus
  • Articulate the drivers of spending and spending growth in health care and evaluate how your organization’s strategy and decision-making processes impact total spending and value
  • Describe approaches to getting the incentives right for both providers and patients and evaluate the impacts of changes to these incentives
  • Understand risk and pooling as they relate to insurance markets and health benefit design
  • Define the role of employers, insurers, and government in influencing the economics of health care markets, such as spending, access to care, and stability of insurance markets
  • Explain how technology and patients’ and providers’ decisions contribute to high spending and spending growth, and how they impact their own organizations.

About the Professor

Professor Michael Chernew - Health Care Economics

Michael Chernew, PhD, is the Leonard D. Schaeffer Professor of Health Care Policy at Harvard Medical School. Dr. Chernew’s research examines several areas related to improving the health care system, including studies of novel benefit designs, Medicare Advantage, alternative payment models, low-value care, and the causes and consequences of rising health care spending. Dr. Chernew is currently serving as Chair of the Medicare Payment Advisory Commission (MedPAC), where he previously served as the Vice Chair and as a Member. In 2000, 2004, and 2010, he served on technical advisory panels for the Center for Medicare and Medicaid Services (CMS) that reviewed the assumptions used by Medicare actuaries to assess the financial status of Medicare trust funds. He's a member of the Congressional Budget Office’s Panel of Health Advisors and Vice Chair of the Massachusetts Health Connector Board. Dr. Chernew is a member of the National Academy of Sciences, a research associate at the National Bureau of Economic Research, and a Senior Visiting Fellow at MITRE. He's currently a co-editor of the American Journal of Managed Care and on advisory boards for several private companies in the health care space, including Virta Health, Archway, and HEALTH[at]SCALE.

Who Will Benefit

Person walking up stairs

Rising Leaders

Develop a comprehensive understanding of the health care landscape, including the key drivers of rising health care spending.

Government Building

Administrators and Policy Makers

Gain insights into strategic decisions around new business initiatives, health benefit plans, reimbursement contract negotiations, and care delivery models.

Stethoscope

Providers

Understand the financial impacts of new technologies and services and how to create value-based care for patients.

Program Structure

Health Care Economics consists of approximately 20 hours of material delivered over a six-week period. You can complete the coursework on your own time while meeting regular deadlines.

Medical professionals who complete the course are eligible for 19.5 AMA PRA Category 1 Credits™ through Harvard Medical School. Upon successful completion of the course, participants will have access to register and claim their credits through the Harvard Medical School’s continuing education platform.

Syllabus

Even for those within the health care industry, the economics of the United States health care system are stunningly complex and can be challenging to navigate. In Health Care Economics, gain insights into the interactions between industries in the health care sector and learn what economic forces are shaping health care. You'll cover core topics, such as moral hazard and adverse selection, and examine how these forces, as well as the actions of patients, providers, and other key stakeholders, shape outcomes in the health care market. This course will examine health care spending growth, considering new technologies and other drivers of growth through an economic lens, and explore the theoretical framework behind controlling health care spending growth through changes to benefit design and payment reform.

Health Care Economics features real-world examples, interactive lessons, and conversations with industry experts. This course allows you to better understand core economic principles as you learn to create more compelling programs, develop more effective growth strategies, negotiate better reimbursement contracts and partnerships, and advocate more effectively both inside and outside your organization.

Learning requirements: In order to earn a Certificate of Completion from Harvard Online, participants must thoughtfully complete all 6 modules by stated deadlines.

Download Syllabus

Modules Big Questions Key Topics Key Exercises
Module 1: Spending Growth
  • Why is US health care so expensive (absolutely)?
  • Why is US health care so expensive (relative to other countries)?
  • Why is health care spending growing?
  • Drivers of health care spending
  • Geographic variation in spending
  • Technology and spending
  • Make health care spending growth predictions
  • Compare US health care costs to costs in other countries
  • Analyze the math behind health care spending
  • Examine sources of waste in the health care industry
  • Explore the role of technology in health care spending growth
Module 2: The Role of the Patient
  • What role should patients play in making important choices about their care?
  • What role should money play in the decisions of patients?
  • Why do people use too much care?
  • How do we know what “too much” is?
  • Moral hazard
  • Distortions caused by insurance
  • The normative nature of the demand curve for health care
  • Demand elasticity
  • Willingness to pay
  • Interpret demand curves
  • Explore willingness to pay for health care
  • Evaluate different solutions to inefficient consumption of care, such as moral hazard
Module 3: The Role of the Provider and Health Care Production
  • What role should the provider play in determining care patterns?
  • What factors affect provider behavior?
  • What do we know about production of health care?
  • How do provider behavior and competition influence care?
  • Variation in care delivery
  • Supply curve
  • Medical arms race
  • Economics of prevention
  • Integration and care coordination
  • Analyze clinical decision-making
  • Recognize supplier-induced demand and the consequences of the medical arms race
  • Explore practice ownership trends
  • Determine whether prevention programs and care coordination are cost saving
Module 4: Risk and Insurance
  • What is the role of insurance in health care?
  • Why is the risk pool for health insurance so important and how do we manage it?
  • What policies stabilize the risk pool?
  • How does the health care system deal with heterogeneous risk?
  • Risk
  • Risk pooling
  • Stability of insurance markets
  • Adverse selection
  • Role of employers
  • Explore risk preferences
  • Calculate actuarially fair premiums to understand what health insurance is and how it works
  • Examine solutions for solving some of the problems with insurance
  • Evaluate policy proposals for dealing with information asymmetry and adverse selection
Module 5: Benefit Design
  • How can we design insurance plans to promote efficient consumer decision-making?
  • High deductible plans
  • Tiered and narrow network plans
  • Reference pricing
  • Value-based insurance designs
  • Explore patient decision-making in health care
  • Analyze different approaches for improving patient incentives
Module 6: Payment Reform
  • How do we structure payments to promote efficient provider decision-making?
  • Distortions generated by fee-for-service
  • Episode-based payment models
  • Population-based payment models
  • Explore provider decision-making in health care
  • Analyze different approaches for improving provider incentives

The HBS Online Advantage

Play an Introduction to the HBS Online Platform video
Play an Introduction to the HBS Online Platform video
  • World-class faculty
  • Edge-of-your-seat online learning
  • Global peer collaboration and networking
  • Real-world, case-based learning

Harvard Business School Online offers a unique and highly engaging way to learn vital business concepts. Immerse yourself in real challenges faced by business leaders across a variety of industries. You’ll wrestle with the same issues and imperfect information, while problem-solving and interacting with fellow learners from around the world.

Play students explain their experience an HBS Online course video
Play students explain their experience an HBS Online course video

Stories from Our Learners

  • This is an amazing course. The professor did a fantastic job dissecting the complexities of healthcare into chewable junks that made it easier to understand the complexities.
    Howard H. Dinh, MD, FACC,
    Medical Director, Cardiac Services, Greater Sacramento, The Permanente Medical Group and Chief, Cardiology, Kaiser Permanente, South Sacramento
  • I felt the course covered a good overall scope and understanding of healthcare economics and would be beneficial for anyone seeking or needing a greater understanding of the stakeholders and forces at work in the healthcare sector. This applies for those new to healthcare as well as those who have worked in the industry for long periods of time.
    Andy Milligan, RN, BSN, CHPN,
    President & CEO Solaris Healthcare, Inc.
  • This is now my fourth HBS online course that I have taken. I love the format that lets me learn asynchronously when I have time in my busy schedule. The HBS courses do a wonderful job encouraging interaction with peer learners which amplifies the learning. The HBS courses foster this peer engagement much more effectively than I have found in other online courses that I have taken.
    Denver Sallee III, MD,
    Chief Financial Officer Sibley Heart Center Cardiology Associate Professor of Pediatrics Emory University School of Medicine


Request More Information

Sign up to receive additional information about this course. Find out what other learners are doing with the skills they gained, and evaluate if this course is the right fit for you.

Learn More

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Frequently Asked Questions

Do I have to log in at a set time? How does the grading process work? At this point, you probably have a few questions, and we’ve got answers.

Learn More

Learn More


Enrollment Eligibility

Our easy online application is free, and no special documentation is required. All applicants must be at least 18 years of age, proficient in English, and committed to learning and engaging with fellow participants throughout the course. We confirm enrollment eligibility within one week of your application.

Apply Now

Apply Now


Health Care Economics Certificate of Completion from Harvard Online
Earn Your Certificate

Enroll today in Harvard Online's Health Care Economics course.

Apply Now
 
All FAQs

Top FAQs

How are HBS Online courses delivered?

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We offer self-paced programs (with weekly deadlines) on the HBS Online course platform.

Our platform features short, highly produced videos of HBS faculty and guest business experts, interactive graphs and exercises, cold calls to keep you engaged, and opportunities to contribute to a vibrant online community.

Are HBS Online programs available in languages other than English?

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We expect to offer our courses in additional languages in the future but, at this time, HBS Online can only be provided in English.

All course content is delivered in written English. Closed captioning in English is available for all videos. There are no live interactions during the course that requires the learner to speak English. Written English proficiency should suffice.

Do I need to come to campus to participate in HBS Online programs?

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No, all of our programs are 100 percent online, and available to participants regardless of their location.

How do I enroll in a course?

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All programs require the completion of a brief application. The applications vary slightly from program to program, but all ask for some personal background information. You can apply for and enroll in programs here. If you are new to HBS Online, you will be required to set up an account before starting an application for the program of your choice.

Our easy online application is free, and no special documentation is required. All applicants must be at least 18 years of age, proficient in English, and committed to learning and engaging with fellow participants throughout the program.

After submitting your application, you should receive an email confirmation from HBS Online. If you do not receive this email, please check your junk email folders and double-check your account to make sure the application was successfully submitted.

Updates to your application and enrollment status will be shown on your Dashboard. We confirm enrollment eligibility within one week of your application.

Does Harvard Business School Online offer an online MBA?

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No, Harvard Business School Online offers business certificate programs.

What are my payment options?

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We accept payments via credit card, wire transfer, Western Union, and (when available) bank loan. Some candidates may qualify for scholarships or financial aid, which will be credited against the Program Fee once eligibility is determined. Please refer to the Payment & Financial Aid page for further information.

We also allow you to split your payment across 2 separate credit card transactions or send a payment link email to another person on your behalf. If splitting your payment into 2 transactions, a minimum payment of $350 is required for the first transaction.

In all cases, net Program Fees must be paid in full (in US Dollars) to complete registration.

What are the policies for refunds and deferrals?

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After enrolling in a program, you may request a withdrawal with refund (minus a $100 nonrefundable enrollment fee) up until 24 hours after the start of your program. Please review the Program Policies page for more details on refunds and deferrals. If your employer has contracted with HBS Online for participation in a program, or if you elect to enroll in the undergraduate credit option of the Credential of Readiness (CORe) program, note that policies for these options may differ.

 

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