The Economics of Health Care

The course covers the economic analysis of healthcare. The demand and supply components are separately analyzed and then assembled as healthcare system as all real-life healthcare emerges under mixed and regulated systems. Institutional and organizational aspects of the health care systems are examined with an eye to policy-making. Since health care is largely a private good, economic analysis would then prescribe private provision on efficiency grounds. However, unlike most other goods and services, its provision is never left entirely to markets in any country, mostly on equity grounds but, since health insurance markets are typically riddled with informational problems potentially causing market failures, the case for public intervention may be strengthened. Healthcare is typically provided under mixed systems. For instance, with private but not-for-profit hospitals and private but contracted physicians, Canada exhibits a mixed system.

The course includes a description of different health care systems and of the structural and organizational arrangements within each system. Moreover, parts of the Canadian system requiring fixes will be analyzed. For instance, budgetary devolution, hospital reorganizations and de-hospitalization, private clinics, primary care reorganization and evolving physician payment systems, long-term care, emergency room overcrowding, technology transfer, spatial access to care, and pharmacare are amongst topics to be covered.