Health Care Economics

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 US 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 US health care spending growth, considering new technologies and other drivers of growth through an economic lens, and explore the theoretical framework behind controlling US 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

• 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.