Applied Healthcare Economics

A wide range of managerial challenges in healthcare, from decisions on what reimbursement levels to accept to how to deal with social determinants of health, could benefit from economic insights. This book for professionals in medical services, insurance and public healthcare emphasises intuition and common sense, making the concepts of health economics more relatable and actionable. It also challenges conventional wisdom, debunking myths and suggesting innovative solutions to industry challenges. For each problem, the book suggests actions managers should or should not take, when to seek new information, and how to interpret it. Economic analysis and research suggest novel answers to questions like whether to raise private insurer prices when Medicare cuts what it pays, when to accept a particular reimbursement offer, or how to manage patients with high-deductible insurance. The book highlights the impact on healthcare costs and efficiency of issues such as moral hazard, cost-sharing and price setting.

Mark V. Pauly is the Bendheim Professor Emeritus of Health Care Management and Economics in the Wharton School at the University of Pennsylvania. He has taught courses in health economics and health care management for fifty-five years at Northwestern University and at the Wharton School. As one of the nation's leading health economists, he has made significant contributions to the fields of health economics and insurance.