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Health Economics: Theories, Insights and Industry Studies / Edition 1
     

Health Economics: Theories, Insights and Industry Studies / Edition 1

5.0 2
by Rexford E. Santerre, Stephen P. Neun
 

ISBN-10: 0030256291

ISBN-13: 9780030256295

Pub. Date: 05/28/1999

Publisher: Cengage Learning

Product Details

ISBN-13:
9780030256295
Publisher:
Cengage Learning
Publication date:
05/28/1999
Series:
Dryden Press Series in Economics
Edition description:
Older Edition
Pages:
672
Product dimensions:
7.76(w) x 9.45(h) x 1.13(d)

Related Subjects

Table of Contents

PART I Basic Health Care Economic Tools and Institutions 1(200)
Introduction
3(27)
What Is Health Economics?
4(1)
The Four Basic Questions
5(5)
Production and Allocative Efficiency and the Production Possibilities Curve
6(2)
The Distribution Question
8(1)
Implications of the Four Basic Questions
9(1)
Economic Models and Analysis
10(1)
Economic Models
10(1)
We Should Address Some Basic Questions
11(4)
Empirical Testing of Health Economic Theories
13(1)
Positive and Normative Analysis
14(1)
The Net Benefit Calculus
15(2)
The Opportunity Cost of 1 Million Medical Dollars
17(1)
The Theories X and Y of Health Economics
18(2)
Summary
20(1)
Review Questions and Problems
21(2)
References
23(1)
Appendix to Chapter 1
24(4)
CEBS Questions
28(2)
Health Care Systems and Institutions
30(28)
Elements of a Health Care System
31(1)
The Role and Financing Methods of Third-Party Payers
32(3)
Reimbursement Method of Third-Party Payers
35(4)
Physician Utilization Rates in Salary and Fee-Based Reimbursement Systems
39(2)
The Production of Medical Services
41(1)
Medical Technology in Canada, Germany, and the United States
42(2)
Physician Choice and Referral Practices
44(1)
The Three National Health Care Systems Summarized
44(2)
An Overview of the U.S. Health Care System
46(5)
Financing of Health Care in the United States
46(3)
Reimbursement for Health Care in the United States
49(1)
Production of Health Services and Provider Choice in the United States
50(1)
Consumer Satisfaction with the Health Care Systems in 11 Countries
51(2)
Summary
53(1)
Review Questions and Problems
54(1)
References
55(1)
CEBS Questions
56(2)
Health, Medical Care, and Medical Spending: An Economic Perspective
58(26)
What Is Health?
59(1)
Why Good Health? Utility Analysis
60(2)
What Is Medical Care?
62(2)
The Production of Good Health
64(5)
Empirical Evidence on the Production of Health in the United States
69(1)
The Determinants of Health among Adults
69(1)
The Impact of Specific Medical Services on Life Expectancy
70(3)
A Look at the Major Causes of Death in the United States in 1996
73(4)
The Determinants of Health among Infants
74(3)
The Impact of Drug Use on the Number of Newborns with Low Birthweight in New York City
77(1)
Health Care Spending in the United States
77(4)
Sources and Uses of Medical Funds in the United States in 1993
79(2)
Summary
81(1)
Review Questions and Problems
81(1)
References
82(2)
The Demand for Medical Services
84(38)
The Demand for Health Care Services and the Law of Demand
85(12)
The Utility-Maximizing Rule
85(2)
The Law of Demand
87(2)
Other Economic Demand-Side Factors
89(2)
The Relationship between Health Insurance and the Demand for Medical Services
91(5)
Moral Hazard
96(1)
Noneconomic Determinants of the Demand for Medical Services
96(1)
Out-of-Pocket Health Expenditures in 1996
97(4)
The Market Demand for Health Care
100(1)
The Fuzzy Demand Curve
100(1)
Chicken Soup or Physician Care for the Common Cold?
101(2)
Elasticities
103(1)
Own-Price Elasticity of Demand
103(1)
Those Pointy-Headed Economists
104(4)
Other Types of Elasticity
107(1)
Empirical Estimation
108(1)
An International Look at the Relationship between Income and Health Care Spending
109(4)
Own-Price, Income, Cross-Price, and Time Cost Elasticity Estimates
110(1)
The Impact of Insurance on the Demand for Medical Services
111(2)
Time is Money: It Was Then and Still Is Now
113(2)
The Impact of Noneconomic Factors on the Demand for Medical Services
114(1)
Summary
115(1)
Review Questions and Problems
115(2)
References
117(2)
CEBS Questions
119(3)
The Demand for Medical Insurance: Traditional and Managed Care Coverage
122(23)
The Demand for Private Health Insurance
123(6)
Deriving the Demand for Private Health Insurance
123(3)
Factors Affecting the Quantity Demanded of Health Insurance
126(3)
The Demand for Employer Contributions to Health Insurance Premiums
129(2)
The Health Insurance Product: Traditional versus Managed Care Insurance
131(6)
Financial Incentives and Management Strategies Facing Consumer/Patients
134(1)
Financial Incentives and Management Strategies Facing Health Care Providers
134(3)
MCOs and the Cost and Quality of Medical Care
137(2)
Satisfaction with Managed Care in Switzerland
139(1)
The Regulation of MCOs
140(2)
Summary
142(1)
Review Questions and Problems
142(1)
References
143(2)
Medical Care Production and Costs
145(32)
The Short-Run Production Function of the Representative Medical Firm
146(8)
Marginal and Average Products
148(5)
Elasticity of Input Substitution
153(1)
A Production Function for Hospital Admissions
154(1)
Short-Run Cost Theory of the Representative Medical Firm
155(8)
The Short-Run Cost Curves of the Representative Medical Firm
156(2)
Short-Run Per-Unit Costs of Production
158(4)
Factors Affecting the Position of the Short-Run Cost Curves
162(1)
Estimating a Short-Run Cost Function for Hospital Services
163(1)
The Cost-Minimizing Input Choice
164(1)
Long-Run Costs of Production
165(1)
The Shadow Price of an Admitting Physician
166(3)
Long-Run Costs Curves
166(2)
Shifts in the Long-Run Average Cost Curve
168(1)
Hospitals: Mind Your Business
169(2)
Long-Run Cost Minimization and the Indivisibility of Fixed Inputs
170(1)
Neoclassical Cost Theory and the Production of Medical Services
171(1)
Summary
172(1)
Review Questions and Problems
173(1)
References
174(1)
CEBS Questions
175(2)
Cost-Benefit Analysis
177(24)
Cost Identification Analysis
178(1)
Cost-Benefit Analysis
179(12)
The Practical Side of Using Cost-Benefit Analysis to Make Health Care Decisions
183(1)
Discounting
184(2)
The Value of Life
186(4)
An Application of Cost-Benefit Analysis---Should College Students Be Vaccinated?
190(1)
Cost Effectiveness Analysis
191(1)
"Parents, How Much Is Your Young Child Worth?"
192(3)
An Application of Cost Effectiveness Analysis: Autologous Blood Donations---Are they Cost Effective?
193(2)
The Monetary Value of Improvements in Health From 1970 to 1990: Was It Worth the Cost?
195(1)
A Mile a Day Keeps the Heart Surgeon Away
195(1)
Summary
196(1)
Review Questions and Problems
196(2)
References
198(3)
PART II Alternative Objectives and Environments Facing Health Care Providers 201(100)
Profit Maximization in Perfectly Competitive Medical Markets
203(39)
What Is Perfect Competition?
204(2)
The Price and Output Behavior of a Competitive Firm in the Short Run
206(5)
The Profit maximization Assumption
206(2)
Profit Maximization by a Competitive Firm
208(2)
Shutdown Point of the Perfectly Competitive Firm
210(1)
Short-Run Supply Theory
211(3)
Factors Influencing the Position of the Short-Run Market Supply Curve
212(1)
Price Elasticity of Supply
213(1)
Price Elasticity of Supply Estimates for Physician Services in Ontario
214(2)
Short-Run Equilibrium in a Competitive Market for Medical Services
216(2)
Surpluses and Shortages
217(1)
Comparative Static Analysis
218(2)
Long-Run Entry and Exit in a Perfectly Competitive Market
220(1)
The Effect of Increased Competition on Dental Prices in New Zealand
221(2)
Taxes and the Location of For-Profit Hospitals in the United States
223(1)
Using Supply and Demand to Explain Rising Health Care Costs
224(1)
A Growing Economy Can Pay Its Health Care Bills
225(2)
The Competitive Market for Medical Inputs
227(6)
The Individual Firm's Demand for an Input
227(2)
The Market Demand and Supply of a Medical Input
229(2)
Equilibrium in the Market for an Input
231(1)
Comparative Static Analysis
232(1)
Economic Incentives and the Supply of Psychiatric Labor Services
233(1)
The Regulated Market for Human Organs
234(2)
Summary
236(1)
Review Questions and Problems
237(2)
References
239(1)
CEBS Questions
239(3)
Profit Maximization in Imperfect Markets
242(35)
Market Structure and Market Power
243(2)
The Monopoly Model
245(8)
Demand and Revenue Curves for a Monopolist
245(3)
The Monopolist's Profit-Maximizing Level of Output
248(1)
Barriers to Entry
249(2)
A Comparative Look at the Competitive and Monopoly Models
251(1)
Price Discrimination
252(1)
CON Regulations as Barriers to Entry into the Dialysis Industry
253(3)
Imperfect Consumer Information
256(4)
The Demand for Information
257(1)
Consumer Information, Product Pricing, and Quality
258(2)
Optometrist Advertising, Pricing, and Quality
260(1)
Monopsony and the Market for Medical Services
260(2)
The Monopsony Power of Blue Cross Plans in the Late 1970s
262(2)
Product Differentiation
264(4)
Spatial Differentiation
264(1)
Quality Differentiation
265(1)
Image Differentiation
265(1)
Product Differentiation and Consumer Demand
266(2)
Structure, Conduct, and Performance Paradigm
268(3)
Summary
271(1)
Review Questions and Problems
272(1)
References
273(1)
CEBS Questions
274(3)
Non-for-Profit Objectives
277(24)
Alternative Models of Firm Behavior
278(10)
Quantity Maximization
278(2)
Utility Maximization Models
280(5)
The Physician Control Model
285(2)
The Supplier-Induced Demand Theory
287(1)
Physician Behavior and the Supplier-Induced Demand Theory: Evidence from Japan and the United States
288(1)
A Theoretical Comparison of the Behavior of For-Profit and Not-for-Profit Health Care Providers
289(2)
Why Are Not-for-Profit Health Care Providers So Prevalent?
290(1)
Do Physicians Target Their Income?
291(2)
The Economic Implications of Not-for-Profit Firms
291(2)
Technical Efficiency and the Behavior of Not-for-Profit and For-Profit Nursing Homes
293(1)
The Ownership Conversion of Not-for-Profit to For-Profit Health Care Providers
294(2)
Summary
296(1)
Review Questions and Problems
297(1)
References
298(1)
CEBS Questions
299(2)
PART III Government and Health 301(72)
Government, Health, and Medical Care
303(40)
Reasons for Government Intervention
304(3)
Types of Government Intervention
307(2)
Public Goods
307(1)
Externalities
308(1)
Special Interest Group Antilegislation
309(10)
Regulations
318(1)
Alcohol Commercial Bans and Alcohol Abuse: An International Perspective
319(2)
The Cost of waiting for Hospital Services in Canada
321(14)
Government Regulations: A Summary
328(1)
Antitrust Laws
328(4)
Public Enterprise
332(1)
The Redistribution Function of Government
333(2)
Why Government Should Subsidize Medical Students' Education
335(2)
Who Pays for Medical Services in the United States?
337(1)
Summary
338(1)
Review Questions and Problems
339(1)
References
340(1)
CEBS Questions
341(2)
Government as Health Insurer
343(30)
Why Does the Government Produce Health Insurance?
343(2)
The Medicaid Program
345(3)
The Financing and Cost of Medicaid
347(1)
Interstate Differences in Medicaid Fees
348(2)
The State Children's Health Insurance Program
349(1)
The Cost Effectiveness of Recent Eligibility Changes in the Medicaid Program
350(1)
The Medicare Program
351(6)
The Financing and Cost of medicare
351(3)
Recent Medicare Program Reforms
354(3)
The Economics of DRG Creep
357(11)
Medicare and Managed Care
366(2)
Advertising of MCOs---Information or Persuasion?
368(1)
Summary
368(1)
Review Questions and Problems
369(1)
References
370(1)
CEBS Questions
371(2)
PART IV Health Industry Studies 373(211)
The Private Health Insurance Industry
375(37)
A Brief History of the Private Health Insurance Industry
376(1)
The Structure of the Private Health Insurance Industry
377(6)
Number, Types, and Size Distribution of Health Insurers
378(2)
Buyer Characteristics
380(1)
Barriers to Entry
381(1)
Consumer Information
382(1)
The Conduct of the Private Health Insurance Industry
383(2)
Price Competition among Health Insurers
383(2)
Tracing the Profitability Cycle of Health Insurance
385(5)
Managed-Care Organizations and Insurance Premiums
386(2)
Cherry-Picking Behavior and Benefit Denial
388(1)
Adverse Selection and Community versus Experience Rating
389(1)
Adoption of Community Rating in New York State
390(1)
The Performance of the Private Health Insurance Industry
391(6)
Output of Private Health Insurance
391(6)
Who Pays for Employer-Mandated Health Insurance?
397(8)
The Price of Private Health Insurance
402(2)
The Private Health Insurance Industry and Health Care Cost Containment Innovations
404(1)
Summary
405(1)
Review Questions and Problems
406(2)
References
408(2)
CEBS Questions
410(2)
The Physician Services Industry
412(43)
The Structure of the Physician Services Industry
413(5)
The Number of Physicians in the United States
414(1)
Specialty Distribution of Physicians in the United States
415(3)
An Economic Analysis of Specialty Choice
418(6)
Mode of Practice
419(1)
Buyers of Physician Services and Methods of Remuneration
420(1)
Reimbursement Practices of Managed-Care Buyers of Physician Services
421(1)
Barriers to Entry
422(2)
Should I Join the AMA?
424(5)
Production, Costs, and Economies of Scale
426(2)
Summary of the Structure of the Market for Physician Services
428(1)
The Conduct of the Physician Services Industry
429(9)
The Impact of Alternative Compensation Schemes on Physician Behavior
429(2)
The Supplier-Induced Demand Hypothesis
431(4)
Geographical Variations in the Utilization of Physician Services
435(2)
The Impact of MCOs on the Physician Services Market
437(1)
Does It Pay Physicians to Advertise?
438(3)
Defensive Medicine and Medical Malpractice Reform
440(1)
The Performance of the Physician Services Industry
441(4)
Expenditures on Physician Services
441(1)
The Physician Services Price Inflation Rate
442(3)
The Economics of Hospital Admitting Privileges
445(3)
The Utilization of Physician Services
446(1)
Physician Income
447(1)
Summary
448(1)
Review Questions and Problems
449(1)
References
450(3)
CEBS Questions
453(2)
The Hospital Services Industry
455(53)
The Structure of the Hospital Services Industry
456(5)
Number, Types, and Size Distribution of U. S. Hospitals
456(3)
Defining the Relevant Product and Geographical Markets for Hospital Services
459(2)
Determining the Number of Equally Sized Hospitals a Market Area Can Support Efficiently
461(11)
Measuring the Structural Competitiveness of the Market
462(1)
Barriers to Entry
463(5)
Number, Types, and Size Distribution of the Buyers of Hospital Services
468(3)
Type of Product
471(1)
Informed Choices and Financial Incentives
472(2)
Consumer (Mis)Information
473(1)
Summary of the Structure of the Hospital Services Industry
473(1)
The Conduct of the Hospital Services Industry
474(7)
Market Structure and Hospital Behavior
475(2)
Hospital Ownership and Hospital Behavior
477(2)
Managed-Care Buyers and Hospital Behavior
479(2)
Drive-Through Deliveries
481(8)
Price Regulations and Hospital Behavior
482(1)
Integrated Delivery Systems
483(5)
Summary of the Conduct of the Hospital Services Market
488(1)
The Performance of the Hospital Services Industry
489(8)
The Growth in Hospital Expenditures
489(2)
The Hospital Services Price Inflation Rate
491(1)
Hospital Input Usage and Utilization
492(5)
The Relative Performance of Hospitals in the United States and Canada
497(1)
Summary
497(1)
Review Questions and Problems
498(2)
References
500(6)
CEBS Questions
506(2)
The Pharmaceutical Industry
508(47)
The Structure of the Pharmaceutical Industry
509(5)
Number and Size Distribution of Sellers
509(3)
The Buyer Side of the Pharmaceutical Market
512(2)
Orphan Drugs and the Salami-Slicing Problem
514(2)
What Factors Influence the Drug Substitution Practices of Pharmacists?
516(7)
Barriers to Entry
518(3)
Consumer Information and the Role of the FDA
521(2)
The Switch from Rx to OTC
523(1)
The Structure of the Pharmaceutical Industry: A Summary
524(1)
The Conduct of the Pharmaceutical Industry
524(5)
Pricing Behavior
524(4)
Promotion of Pharmaceutical Products
528(1)
Can Physician Drug Recommendations Be Bought?
529(7)
Product Innovation
530(6)
The Conduct of the Pharmaceutical Industry: A Summary
536(1)
The Performance of the Pharmaceutical Industry
536(3)
The Relative Price Inflation Rate of Pharmaceutical Products
537(2)
Pharmaceutical Price Differences in the United States and Canada
539(5)
Output of New Pharmaceutical Products
541(2)
Profits in the Pharmaceutical Industry
543(1)
Has the United States Remained the World Leader in Pharmaceutical Innovation?
544(2)
An International Comparison of Pharmaceutical Profits
546(3)
The Performance of the Pharmaceutical Industry: A Summary
548(1)
Summary
549(1)
Review Questions and Problems
549(1)
References
550(3)
CEBS Questions
553(2)
An Overview of Health Care Reform
555(29)
The Performance of the U. S. Health Care System: A Summary and an International Comparison
557(7)
Summarizing the Structure, Conduct, and Performance of the Various Medical Care Markets
557(4)
The U. S. Health Care Economy: An International Comparison
561(3)
An Overview of Health Care Reform in the United States
564(1)
Health Care Reform at the Federal Level
565(7)
Medical Savings Accounts
565(4)
Individual Mandates
569(1)
Managed Competition
570(1)
National Health Insurance
571(1)
Health Care Reform at the State Level
572(6)
Hawaii: The Case of Employer Mandates
573(1)
Maryland: The Case of Regulation
574(1)
Minnesota: The Case of Regulated Competition
575(1)
Oregon: The Case of Rationing Medicaid Services
576(1)
What Can Be Gained from State Attempts at Health Care Reform?
577(1)
An Overview of the Clinton Health Care Plan
578(2)
The Collapse of the Clinton Health Care Plan
579(1)
Summary
580(1)
Review Questions and Problems
581(1)
References
582(2)
Appendix-A Brief Exposure to Econometrics 584(29)
Glossary 613(14)
Index 627

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Health Economics: Theories, Insights and Industry Studies 5 out of 5 based on 0 ratings. 2 reviews.
Guest More than 1 year ago
This exceptional college level text applies economic theory to every aspect of the healthcare field. The authors¿ profound and insightful conclusions are drawn from real world examples that allow physicians, healthcare consultants, HMO managers, government officials and yes, interested students, to comprehend the implications of healthcare issues from an organizational and governmental perspective. Additionally, the authors¿ conclusions are applicable when analyzing the American macro economy in which 14% of GDP originates in the healthcare field. A more astute microeconomics text does not exist!
Guest More than 1 year ago
After several years of undergraduate business school, I can sincerely attest to the usefulness of this text. By concisely analyzing and interpreting the challenging material, Santerre and Neun transform Health Economics into a universally interpretable language. Importantly, the plethora of insights and empirical studies substantiate and enhance each chapter. This powerful text negates the need for course enhancing supplementary readings. This is one of very few texts that is worth its weight in gold!