University of South Carolina, Arnold School of Public Health, Dept. of Health Services Policy and Management

If you're coming to this page from Blackboard, read what's in this box. Then use the link near the bottom of this box to jump to this week's material.

A new industry: Collections for non-profit hospitals

Would national health insurance stifle innovation?

Revised readings schedule for Oct. 12 through Dec. 3!

A distinction between managed care and "real HMOs"?

An appalling stastistic, related to exam question 1's last part: One in five wounded Iraq War veterans has a family member who quit a job to make time to care for the veteran. http://www.iava.org/

A 2007 Nobel economics prize winner talks to Reuters about public goods.

A health-related story? The chief of voting rights enforcement in the Civil Rights Division of the U.S. Department of Justice says that voter picture-ID laws, like the one that Georgia enacted, hurt whites more than blacks. Why? Because, he says, old people have more trouble with ID's, and blacks "don't become elderly. The way white people do. They die first." I'm not making this up!

The Sept. 23 New York Times featured an article about quality falling dramatically at some nursing homes after they were bought by investment companies. What happened to the market? Why didn't the patients all switch to competing nursing homes that offered better quality for the money?

If the reading seems like a lot, check out How 2 Read an Article. Advice for the overwhelmed.

One student found this presentation on hospital pricing reform. Reinhardt's incremental cost article implies that hospital pricing reform could help make our decisions about the venue of care more rational. Save this for now. We'll come back to this in a couple of weeks.

A New England Journal of Medicine article about SCHIP -- Medicaid for children of working families. Current events!

Jump to Nov. 12 stuff

 

HSPM J712
Health Economics
Fall 2007

Samuel L. Baker, Ph.D.

Associate Professor
Department of Health Services Policy and Management
Arnold School of Public Health
University of South Carolina
800 Sumter St., Room 121
Columbia, SC 29208
Phone: (803)777-5045  Fax: (803)777-6986  E-mail: 
Please put 712 in the subject line of course-related e-mail. Please use Blackboard, not e-mail, to submit course work.
What you'll need - What you'll do - Schedule of Classes, Readings, and On-Line Materials - Interactive Tutorials

The class meets at 6pm-8:30pm on Mondays in Wardlaw room 116. (Map.) Class meetings are televised live to regional campuses and other locations with access to the ETV closed-circuit network.

Office hours: 10:00am-12:00pm and 2:00pm-4:00pm on Mondays, or by appointment.

Goals

HSPM J712 introduces the application of economics to decisions regarding the amount, organization, and distribution of health care services in the United States. The goals of the course are:

Learning objectives

You will demonstrate on the course's written assignments and through class participation:
  1. that you understand and can use basic economics concepts, such as supply, demand, marginal analysis, the theory of capital, and cost-benefit analysis,
  2. that you can analyze the economic institutions of the United States health care system,
  3. that you can discuss controversies surrounding the development of health insurance and the government's role in providing, financing, and regulating health services.

What you need to have to take this course

Prerequisite courses: None. No prior study of economics is required for this course.

Required purchase:

Three books and a DVD. Please see the news section at the top of the syllabus.

 Testing Java  If your Java version,  :( If you see this text, Java is not working at all. Go to java.com to download and install it. At some workplaces, you may have to request that Java be enabled for your computer. , is 1.4 or higher, you should be able to do the tutorials. Otherwise, get the latest "Java for your desktop" for free at http://java.com.
If you installed Java and you still don't see the version number, try this.

Interactive instruction: A group of computer-based interactive instructional tutorials is available on the Internet at http://hspm.sph.sc.edu/Courses/Econ/Tutorials.html. The interactive tutorials introduce basic economics concepts, particularly for students with little or no economics background. Your work with the interactive tutorials is not monitored or graded. These tutorials are integrated into the Class Schedule and Readings, as shown below. All of the interactive tutorials are available all semester, so you can use or reuse them at any time.

Required computer access: Students must have access to a computer with:

Computers meeting these requirements are available for student use in the Department's BlueCross BlueShield and Companion Technologies Computer Education Center, on the first floor of the Arnold School of Public Health building. Public libraries and regional campuses may also have computers you can use.
 How to submit written work: 
Blackboard's Assignments feature
Please do not use Blackboard's digital drop box or messages. I do not regularly check those.

Course Work for Credit

Weekly comment:

Good comments can be about:

My idea is that you learn new concepts by using them. That is the purpose of the comments.

Take-home exams are due on these dates:

Mid-term: Mon., Oct. 15
Final: Mon., Dec. 10

Each exam counts for one-third of the grade.

The exams will be distributed via this web site, or by other method if you request.

Your course grade is one-third the comments, one-third the mid-term exam, and one-third the final exam.

Class Schedule and Readings

Aug. 27 Introduction to the Course -- no comment due

How the course will operate, and the general shape of the US health care economic sector.

 Web 

Sep. 10 Cost -- comment due

Learning objectives: Basic cost concepts, the accounting of future costs, methods and ethics of cost-benefit and cost-effectiveness analysis applied to health care.

 Web 

 Blackboard 
Future Cost and Income
 Web 

Sept. 17 Cost-Benefit, Cost-Effectiveness, and Cost-Savings Analysis comment due

Learning objectives: Methodology and ethics in cost-benefit and cost-effectiveness analysis, with application to evaluating the cost-effectiveness of preventive care, the distinction between cost-effective and cost-saving, and an attempt at policy based on cost-effectiveness analysis. Then, the concepts of market, supply, and demand.

Cost-Benefit Analysis
 Web 

 Blackboard 
Cost-Effectiveness Analysis
 Web 

 Blackboard 

Sept. 24 Health Care on the Market: The Demand for Health Care -- comment due

Learning objectives:  What economists mean by demand; risk and risk aversion, as they relate to insurance; the basic issue of whether a free market in health care can be efficient; moral hazard.

Supply and Demand introduction
 Web 

Oct. 1 Health Care Demand II: What's special about health care? comment due

Learning objectives: Insurance concepts, uncertainty in health care choice

 Web 

 Blackboard 

 Web 

Oct. 8 Health Care Demand III -- Optional: Submit one or more exam answers on Blackboard.

 Blackboard 

These readings, postponed from an earlier session, show that people do get less health care when they have to pay more. Theory of demand does apply. There is a demand curve for health care generally and there are demand curves for specific types of health care. These demand curves slope down from left to right. To use the jargon, the demand for health care has some elasticity. The elasticity is pretty low, especially for people seeking care for serious symptoms, but it's not 0.

Oct. 15 First Exam Due

Oct. 15 The Supply Side of Health Care Markets

Learning objectives: Competition and monopoly theory, how the market sets price and quantity in health care

 Web 

 Blackboard 

Oct. 22 The Supply Side continued comment

Learning objectives: How DRG- and RBRV-based payment work.

 Web 
DRG's -- A tool for controlling hospital prices
 Blackboard 
RBRVS -- A tool for controlling physician fees
 Blackboard 

Oct. 29 Managed Care and Consumer-Driven Health Care as a proposed solution comment due

Who Killed HealthCare?: America's $2 Trillion Medical Problem - and the Consumer-Driven Cure, by Regina Herzlinger

 Web 

Learning objectives:  The history of managed care, results of managed care, managed care and quality.

 Blackboard 

Nov. 5 No class -- APHA week

Nov. 12 Pharmaceuticals comment due

Learning objectives: Pharmaceutical prices, research, and sales promotion. The dilemma of how to finance and promote technological advance.

Marcia Angell, The Truth About the Drug Companies: How They Deceive Us and What to Do About It

 Web 

Nov. 19 Administrative Cost and International Comparisons -- comment due

Learning objectives: Understand and evaluate the claim that universal health insurance covers gives more value at less expense.

Health Care Meltdown: Confronting the Myths and Fixing Our Failing System, by Bob Lebow

Administrative Cost
 Blackboard 
International Comparisons
 Web 

Nov. 26 Sicko, a movie by Michael Moore comment due

 Web 

Dec. 3 Sicko discussion continues comment due

 Web  Articles to be announced on current state efforts in Massachusetts, California, and elsewhere.

Dec. 10 Second take-home exam due by end of day. No class.


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http://hspm.sph.sc.edu/Courses/712.html
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