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MHA618.UAGC.CG.2021.0323.SMD.pdf
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CGDT rev. December 2020 [Do not include this revision information in the final version of the Course Guide.]
Course Guide
MHA618
HEALTH ECONOMICS This course focuses upon the analysis of health care operations and planning decisions derived from the
theoretical concepts of demand, cost production, profit and competition. External and internal forces
challenging health care services are analyzed. Organizational effectiveness and efficiency within the
complex health care environment are emphasized.
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MHA618: HEALTH ECONOMICS COURSE GUIDE
TABLE OF CONTENTS
TABLE OF CONTENTS ....................................................................................................................................... 2
COURSE AT A GLANCE ..................................................................................................................................... 5
COURSE DESCRIPTION ........................................................................................................................................ 5
COURSE DESIGN ................................................................................................................................................. 5
LEARNING OUTCOMES ........................................................................................................................................ 5
COURSE MATERIALS ........................................................................................................................................ 6
REQUIRED TEXT ................................................................................................................................................. 6
REQUIRED RESOURCES ...................................................................................................................................... 6
Articles ........................................................................................................................................................... 6
Multimedia ..................................................................................................................................................... 6
RECOMMENDED RESOURCES .............................................................................................................................. 6
Articles ........................................................................................................................................................... 6
Multimedia ..................................................................................................................................................... 9
Websites ........................................................................................................................................................ 9
COMPONENTS OF COURSE EVALUATION ................................................................................................... 10
DISCUSSIONS ................................................................................................................................................... 10
ASSIGNMENTS .................................................................................................................................................. 10
Written Assignments .................................................................................................................................... 10
FINAL PAPER .................................................................................................................................................... 10
GRADING PERCENT BREAKDOWN ...................................................................................................................... 14
WEEK 1 .............................................................................................................................................................. 15
COURSE CONTENT ............................................................................................................................................ 15
Overview ...................................................................................................................................................... 15
Learning Outcomes ..................................................................................................................................... 15
Introduction .................................................................................................................................................. 15
Required Resources .................................................................................................................................... 15
Recommended Resources .......................................................................................................................... 16
Discussions ................................................................................................................................................. 17
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MHA618: HEALTH ECONOMICS COURSE GUIDE
Assignment .................................................................................................................................................. 19
WEEK 2 .............................................................................................................................................................. 20
COURSE CONTENT ............................................................................................................................................ 20
Overview ...................................................................................................................................................... 20
Learning Outcomes ..................................................................................................................................... 20
Introduction .................................................................................................................................................. 20
Required Resources .................................................................................................................................... 21
Recommended Resources .......................................................................................................................... 21
Discussions ................................................................................................................................................. 23
Assignment .................................................................................................................................................. 26
WEEK 3 .............................................................................................................................................................. 28
COURSE CONTENT ............................................................................................................................................ 28
Overview ...................................................................................................................................................... 28
Learning Outcomes ..................................................................................................................................... 28
Introduction .................................................................................................................................................. 28
Required Resources .................................................................................................................................... 29
Recommended Resources .......................................................................................................................... 29
Discussions ................................................................................................................................................. 30
Assignment .................................................................................................................................................. 32
WEEK 3 .............................................................................................................................................................. 33
COURSE CONTENT ............................................................................................................................................ 33
Overview ...................................................................................................................................................... 33
Learning Outcomes ..................................................................................................................................... 33
Introduction .................................................................................................................................................. 33
Required Resources .................................................................................................................................... 34
Recommended Resources .......................................................................................................................... 34
Discussions ................................................................................................................................................. 36
Assignment .................................................................................................................................................. 37
WEEK 5 .............................................................................................................................................................. 39
COURSE CONTENT ............................................................................................................................................ 39
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MHA618: HEALTH ECONOMICS COURSE GUIDE
Overview ...................................................................................................................................................... 39
Learning Outcomes ..................................................................................................................................... 39
Introduction .................................................................................................................................................. 39
Required Resources .................................................................................................................................... 40
Discussions ................................................................................................................................................. 41
Assignment .................................................................................................................................................. 43
WEEK 6 .............................................................................................................................................................. 44
COURSE CONTENT ............................................................................................................................................ 44
Overview ...................................................................................................................................................... 44
Learning Outcomes ..................................................................................................................................... 44
Introduction .................................................................................................................................................. 44
Required Resources .................................................................................................................................... 44
Recommended Resources .......................................................................................................................... 45
Discussions ................................................................................................................................................. 46
Assignment .................................................................................................................................................. 47
COURSE MAP ................................................................................................................................................... 48
MHA618 ALIGNMENT MAP .............................................................................................................................. 51
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MHA618: HEALTH ECONOMICS COURSE GUIDE
COURSE AT A GLANCE
COURSE DESCRIPTION This course focuses on the analysis of health care operations and planning decisions derived from the
theoretical concepts of demand, cost production, profit and competition. External and internal forces
challenging health care services are analyzed. Organizational effectiveness and efficiency within the complex
health care environment are emphasized.
COURSE DESIGN This course examines the components of health economics from the perspective of a health care manager
focused in operations and transitioning into strategic financial planning. Throughout the course, individual
elements will be examined. When possible, this examination will take place through the lens of real-world
professional situations that affect today’s health care managers and operations officers. Students will be
provided with opportunities to design and present potential solutions in real-world simulations taking on a
variety of professional roles. The assignments within the course will culminate in a proposed feasibility study
that analyzes value, effectiveness, and return on investment to a health care organization of the student’s
choosing.
LEARNING OUTCOMES Upon successful completion of this course, students will be able to:
1. Communicate the relevance of economics to the U.S. health care system
2. Analyze economic theories that are germane to the provision of health services.
3. Analyze the role of public policy and the economics of health services.
4. Develop microeconomic models responsive to specific health care service demands.
5. Compare and contrast economic challenges and incentives among health care’s organizational models.
6. Evaluate the social-cultural issues influencing health economics.
7. Design an economical health care service that is responsive to a given market.
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MHA618: HEALTH ECONOMICS COURSE GUIDE
COURSE MATERIALS
REQUIRED TEXT Lee, R. H. (2015). Economics for health care managers (3rd ed.). Chicago, IL: Health Care Administration
Press. Retrieved from https://redshelf.com
• The full-text version of this e-book is available through your online classroom.
REQUIRED RESOURCES
Articles
Daniels, E. B., & Dickson, T.C. (1990). Assessing the feasibility, Performance of geriatric clinics. Healthcare
Financial Management, 44(2), 30-34. Retrieved from the ProQuest database
Democratic Policy & Communications Center. (n.d.) The Patient Protection and Affordable Care Act [PDF].
Korda, H., & Eldridge, G. N. (2011). Payment incentives and integrated care delivery: Levers for health system
reform and cost containment. Inquiry 48(4), 277-287. doi:10.5034/inquiryjrnl_48.04.01
Leff, B., Burton, L., Mader, S., Naughton, B., Burl, J., Greenough, W.B., Burton, J. R. (2005). Hospital at home:
Feasibility and outcomes of a program to provide hospital-level care at home for acutely ill older
patients. Annals of Internal Medicine, 143(11), 798-808. Retrieved from ProQuest database.
Rice, T. (1997). Physician payment policies: Impacts and implications. Annual Review of Public Health, 18(1),
549. Retrieved from the EBSCOhost database.
University of Kansas. (2013) Community tool box. Retrieved from http://ctb.ku.edu/en/table-of-
contents/assessment/assessing-community-needs-and-resources/swot-analysis/main
Multimedia
Demand Metric (2012, November 5). Feasibility study template [Video file]. Retrieved from
http://www.youtube.com/watch?v=gNsimuW0dJU
RECOMMENDED RESOURCES
Articles
The Access Project. (2001). A community leader’s guide to hospital finance: Evaluating how a hospital gets
and spends its money. Retrieved from http://www.accessproject.org/downloads/Hospital_Finance.pdf
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MHA618: HEALTH ECONOMICS COURSE GUIDE
Arrow, K. J. (1963). Uncertainly and the welfare of economics of medical care. The American Economic
Review, 53(5), 941-973. Retrieved from
http://stevereads.com/papers_to_read/uncertainty_and_the_welfare_economics_of_medical_care.pdf
Bergner, A., & Thompson, M. (2013). The new economics of health care benefits. Financial Executive, 29(2),
29-32. Retrieved from the EBSCOhost database.
Baicker, K., Congdon, W. J., & Mullainathan, S. (2012). Health insurance coverage and take-up: Lessons from
behavioral economics. Milbank Quarterly, 90(1), 107-134. doi:10.1111/j.1468-0009.2011.00656.x
Block, D. (2013). Disruptive innovation: Contributing to a value-based health care system. Physician Executive,
39(5), 46-52. Retrieved from the EBSCOhost database.
Bowblis, J. R., & Lucas, J. A. (2012). The impact of state regulations on nursing home care practices. Journal
of Regulatory Economics, 42(1), 52-72. doi: 10.1007/s11149-012-9183-6
Cantor, J. C., Thompson, F. J., & Farnham, J. (2013). States' commitment to medicaid before the Affordable
Care Act: Trends and implications. Inquiry, 50(1), 71-84. Retrieved from the EBSCOhost database.
Custer, W. S. (2013). Consumer choice in health insurance. Journal of Financial Service Professionals, 67(4),
25-27. Retrieved from the EBSCOhost database.
Davis, K., & Guterman, S. (2007). Rewarding excellence and efficiency in Medicare payments. Milbank
Quarterly, 85(3), 449-468. doi:10.1111/j.1468-0009.2007.00495.x
Dhingra, S. S., Zack, M. M., Strine, T. W., Druss, B. G., & Simoes, E. (2013). Change in health insurance
coverage in Massachusetts and other New England states by perceived health status: Potential impact
of health reform. American Journal of Public Health, 103(6), e107-e114. doi:10.2105/
AJPH.2012.300997
Dowd, S. B. (2004). Applied game theory for the hospital manager: Three case studies. Health Care Manager,
23(2), 156-161. Retrieved from the EBSCOhost database.
Ellis, R. P., & McGuire, T. G. (1993). Supply-side and demand-side cost sharing in health care. Journal of
Economic Perspectives, 7(4), 135-151. Retrieved from the EBSCOhost database.
Fottler, M. D., & Lanning, J. A. (1986). A comprehensive incentive approach to employee health care cost
containment. California Management Review, 29(1), 75-94. Retrieved from the EBSCOhost database.
Greenwald, L. M. (2000). Medicare risk-adjusted capitation payments: From research to implementation.
Health Care Financing Review, 21(3), 1-5. Retrieved from the EBSCOhost database.
Guo, J., Wade, T., Pan, W., & Keller, K. (2010). School-based health centers: Cost-benefit analysis and impact
on health care disparities. American Journal of Public Health, 100(9), 1617-1623.
doi:10.2105/AJPH.2009.185181
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MHA618: HEALTH ECONOMICS COURSE GUIDE
Haws, K. L., & Winterich, K. (2013). When value trumps health in a supersized world. Journal of Marketing,
77(3), 48-64. Retrieved from the EBSCOhost database.
Heroman, W. M., Davis, C. B., & Farmer, J. L. (2012). Demand forecasting and capacity management in
primary care. Physician Executive, 38(1), 30-34. Retrieved from the EBSCOhost database.
Hsu, S. H. (2011). Cost information and pricing: Empirical evidence. Contemporary Accounting Research,
28(2), 554-579. doi:10.1111/j.1911-3846.2010.01051.x
Levaggi, L., & Levaggi, R. (2010). Strategic costs and preferences revelation in the allocation of resources for
health care. International Journal of Health Care Finance and Economics, 10(3), 239-256.
doi:http://dx.doi.org.proxy-library.ashford.edu/10.1007/s10754-010-9079-x
Lillrank, P., Groop, P., & Malmström, T. J. (2010). Demand and supply-based operating modes: A framework
for analyzing health care service production. Milbank Quarterly, 88(4), 595-615. doi:10.1111/j.1468-
0009.2010.00613.x
Luxton, D. D. (2013). Considerations for planning and evaluating economic analyses of telemental health.
Psychological Services, 10(3), 276-282. doi:10.1037/a0030658
Mango, P. D., & Riefberg, V. E. (2009). Three imperatives for improving US health care. Mckinsey Quarterly,
(2), 40-44. Retrieved from the EBSCOhost database.
Porter, M. E., & Lee, T. H. (2013). The strategy that will fix health care. Harvard Business Review 91(10), 50-
70. Retrieved from the EBSCOhost database.
Rohr, R. (2012). Cost control: The new frontier of medical management. Physician Executive, 38(4), 82-83.
Retrieved from the EBSCOhost database.
Saleh, S. S., Freire, C., Morris-Dickinson, G., & Shannon, T. (2012). An effectiveness and cost-benefit analysis
of a hospital-based discharge transition program for elderly medicare recipients. Journal of the
American Geriatrics Society, 60(6), 1051-1056. doi:10.1111/j.1532-5415.2012.03992.x
Smith, G. K. (2013). Medical price transparency. Insurance Advocate, 124(7), 40. Retrieved from the
EBSOhost database.
Westhoff, W. W., Cohen, C. F., Cooper, E., Corvin, J., & McDermott, R. J. (2012). Cooperation or competition:
Does game theory have relevance for public health? American Journal of Health Education, 43(3), 175-
183. Retrieved from the ProQuest database.
Yu, T., & Hong Yih, C. (2007). Is health care really a luxury? A demand and supply approach. Applied
Economics, 39(9), 1127-1131. doi:10.1080/00036840500461857
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MHA618: HEALTH ECONOMICS COURSE GUIDE
Multimedia
Forbes. (2014, December 15). The top health industry trends to watch in 2015 [Video file]. Retrieved from
https://youtu.be/fRym_jyuBc0
Websites
The Agency for Health Research and Quality (www.ahrq.gov)
Hospital Corporation of America (http://hcahealthcare.com)
Tenet Health System (http://www.tenethealth.com/pages/home.aspx )
United States Department of Health & Human Services (http://www.hhs.gov/healthcare/rights/)
United States Department of Labor (http://www.bls.gov/ooh/healthcare/)
Vaikom Hospital & Healthcare (http://vaikomhealthcare.com/project-cost-estimates)
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MHA618: HEALTH ECONOMICS COURSE GUIDE
COMPONENTS OF COURSE EVALUATION
Multiple measures of evaluation are used in the course, allowing students opportunities to demonstrate their
learning in more than one way, and giving consideration to individual learning styles. Course components that
will be evaluated include:
DISCUSSIONS Each week students will participate in online discussions with classmates, which are related to the week’s
readings. These discussions replace the interactive dialogue that occurs in the traditional classroom setting.
Each week, students’ initial discussion posts are due by 11:59 p.m. (of the time zone in which each student
resides) on Day 3 (Thursday). Students will have until 11:59 p.m. on Day 7 (the following Monday) to make the
required minimum number of response posts to classmates. Discussions represent 38% of the overall
course grade.
ASSIGNMENTS
Written Assignments
There is a written assignment due in Weeks Two and Four of this course. These assignments must reflect
college-level writing and critical thinking. Assignments represent 23% of the overall course grade.
FINAL PAPER The final assignment for this course is a Final Paper. The purpose of the Final Paper is for you to culminate the
learning achieved in the course by presenting a feasibility study based on the Week Six article by Daniels and
Dickson (1990). The Final Project represents 39% of the overall course grade.
Focus of the Final Paper
Building on the work you completed in Weeks Two and Four, you will complete a feasibility study based on a
pre-approved health care project of your choice. Using the feasibility study outlined in the Daniels and Dickson
(1990) article as a model, and including a minimum of six other relevant resources and readings, create a 12-
to15-page feasibility study that includes the following headings and supporting information:
Evaluating Feasibility
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MHA618: HEALTH ECONOMICS COURSE GUIDE
The concept of a feasibility study is central to viability, the “worth to the effort” ratio, and return on investment
(ROI). What needs to be taken into consideration to create a feasibility study (e.g., human resources,
community needs, technological advances, federal and state regulatory issues)? Within this section, you will
research and design an economical health care service that is responsive to a given market. This research
stems from understanding your target population and present need in health services. Furthermore, as you
have seen from the Daniels and Dickson (1990) article, you must appraise your human resources, capital
investment, and how your effort will yield a return on investment from your facilities perspective as well as the
intangible greater good of providing healthcare to a community.
Strategic Effect
Analyze the role of public policy with regard to your project. What policies and processes should be in place to
create an effective program? How will you measure the effectiveness of your program and your provision of
health care services? Develop a microeconomic model that is responsive to the specific health care service
demands of your target population. For example, the current trend of the medical home model, which allows for
the coordination of care, allows for better communication among service providers as well as convenience for
patients. Is the population a market priority? How does your program serve a need for your target population?
Market Analysis
Within this section you will identify the population demographics, who your competitors are, and whether or not
a real need for the services you are proposing exists in the community. As you examine the demographic and
population needs using Census data and other reliable sources, you must also consider what competitors, if
any, exist in the present climate. This requires an evaluation of the present socioeconomic and cultural trends
influencing how people make decisions in health care. In addition, in this analysis you will need to compare
and contrast economic challenges and incentives among health care’s organization models. This comparison
requires an understanding of past challenges and incentives that other organizations have implemented.
Financial Analysis
This section includes the revenue, expenses, and net income. Compare and contrast economic challenges and
incentives by finding and describing multiple sources of public and private funding (e.g., grants, donations,
awards, special projects) for this project. Include a reference list for your funding sources that is formatted in
APA as outlined in the Writing Center. Next, identify the funding constraints for each source. Include limitations
of monies awarded, timing issues, fitting the needs of the funding sources, difficulties of connecting with private
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MHA618: HEALTH ECONOMICS COURSE GUIDE
funders, etc. Finally, specify the internal ramifications of moving forward using SWOT analysis. What are the
fixed and variable costs associated with your project? What are the annual maintenance and operation costs?
Elaborate on how you arrived at your sensitivity analysis conclusions.
Operations Performance
This section examines the incremental effect of how your proposed service will impact all aspects of health
services. This portion of the study explores how the statistical data you have researched affects the proposed
service in terms of efficiency and value. This can be difficult to measure initially. However, through incremental
and ongoing evaluation of operations, you can begin to see what constitutes the best performance in this
instance and how it serves the target population. In this section, you will further illustrate the incentives and
challenges faced by a health organization and communicate the relevance of economics within the U.S. health
care system as it pertains to your proposed services.
Inpatient
If your proposed study has an inpatient component, this section will elaborate on volume of patients, types of
payers, and how utilization rates impact your proposed study. In addition, you will further explain how your new
inpatient service will add value for patients and improve the financial viability of the institution. This section will
require you to use both qualitative and quantitative data to justify the plan. Hospitals operate in terms of how
many beds are occupied relative to how many are empty. Most CEOs want to see that a unit is running at near
full capacity and that volume is increasing year to year. Analyze how your proposal will meet these demands
by explaining the data you have collected and predicting potential financial outcomes. Finally, evaluate and
explain how value-based care will impact your ability to maintain margins within this newly proposed service.
Outpatient
If your proposed study has an outpatient component, examine how admissions, revenue, and workflow of staff
will improve the efficiency of your proposed service. Analyze how your outpatient service will add value for
patients and improve the financial viability of the institution. Justify your plan with appropriate data. As stated in
the inpatient section, the content here applies much the same way. However, the caveat for outpatient services
lies in the ambulatory setting. This aspect should be most interesting under conditions created by the
Affordable Care Act. The new paradigm shift will be toward more preventative, primary, and outpatient care
settings to reduce the numbers of patients being admitted to hospitals. Please explain how your proposal takes
these conditions into consideration. In this section, you will further compare and contrast economic challenges
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MHA618: HEALTH ECONOMICS COURSE GUIDE
and incentives among health care’s organization models in an outpatient setting. You will also further augment
your design in an economic framework that is responsive to your market.
Outlook
This section examines future implications of your proposed services and how they will impact the future health
outcomes of the community and financial health of the services being provided. Analyze economic theories
that are germane to the provision of your proposed health services. What adjustments might you need to make
in terms of what the “unintended consequences” may be? For example, Baylor Hospital in Houston proposed
and spent 250 million to create a brand new hospital that currently stands empty because it was built during
the U.S. economic downturn, the loan was no longer able to finance the construction, and the initial
examination of its necessity did not play out as expected. Provide conclusions and implications of how your
feasibility study fits within the larger context of the system of services currently being provided. How do they
work with one another within the larger health care system? Finally, evaluate how your study will respond to
market and design models that impact the community based on current regulatory and market needs.
Finally, evaluate how your study will respond to market and design models that impact the community based
on current regulatory and market needs.
Writing the Final Paper
The Final Paper
• Must be 12 to 15 double-spaced pages in length and formatted according to APA style as
outlined in the Writing Center.
• Must include a title page with the following:
o Title of paper
o Student’s name
o Course name and number
o Instructor’s name
o Date submitted
• Must begin with an introductory paragraph that has a succinct thesis statement.
• Must address the topic of the paper with critical thought.
• Must include the listed headings with the content required under each.
• Must end with a conclusion that reaffirms your thesis.
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MHA618: HEALTH ECONOMICS COURSE GUIDE
• Must use at least six scholarly sources that were published within the last five years, including a
minimum of three peer-reviewed sources from the University of Arizona Global Campus Library.
• Must document all sources in APA style as outlined in the Writing Center.
• Must include a separate reference page that is formatted according to APA style as outlined in
the Writing Center.
GRADING PERCENT BREAKDOWN
Activity Grading Percent
Discussions 38
Assignments 23
Final Paper 39
Total 100
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MHA618: HEALTH ECONOMICS COURSE GUIDE
WEEK 1
COURSE CONTENT To be completed during the first week of class.
Overview
Assignment Due Date Format Grading Percent
Post Your Introduction Day 1
Discussion 2
Value and Consumer Preference Day 3
(1st post)
Discussion 3
The Importance of Economics for Health Care
Leaders
Day 3
(1st post)
Discussion 3
Prepare for the Week Two Assignment: “Final
Paper Topic and Area of Interest”
Day 7 Assignment
N/A
Learning Outcomes
This week students will:
1. Analyze economic models that are specific to consumer preference.
2. Analyze trends in potential payer mixes as they relate to changing demographics.
Introduction
This week begins with a look at the various topics covered in the course and a discussion of these topics in
terms of individual student’s professional aspirations. Students will examine the important relationship between
perceived value and consumer preference within the arena of health service providers. Then, they will delve
into the issue of shifting demographics in a payer market through a real-world managerial scenario. Students
are encouraged to look ahead to the Week Two written assignment as they complete this week’s work.
Required Resources
Required Text
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MHA618: HEALTH ECONOMICS COURSE GUIDE
Lee, R. H. (2015). Economics for health care managers (3rd ed.). Chicago, IL: Health Care Administration
Press. Retrieved from https://redshelf.com
• Chapter 1: Why Health Economics?
• Chapter 2: An Overview of the U.S. Healthcare System
Recommended Resources
Articles
Bergner, A., & Thompson, M. (2013). The new economics of health care benefits. Financial Executive, 29(2),
29-32. Retrieved from the EBSCOhost database.
• This paper provides a succinct overview of the new realities and challenges facing how health
care benefits impact cost and the delivery of health services.
Baicker, K., Congdon, W. J., & Mullainathan, S. (2012). Health insurance coverage and take-up: Lessons from
behavioral economics. Milbank Quarterly, 90(1), 107-134. doi:10.1111/j.1468-0009.2011.00656.x.
Retrieved from the EBSCOhost database.
• This paper provides fundamental lessons on how behavioral economics impacts how insurance
companies decide on coverage and benefits. It offers lessons on the importance of human
psychology in the delivery of health care.
Haws, K. L., & Winterich, K. (2013). When value trumps health in a supersized world. Journal of Marketing,
77(3), 48-64. Retrieved from the EBSCOhost database.
• This paper provides an overview of the concept of value and what it means in health care.
Porter, M. E., & Lee, T. H. (2013). The strategy that will fix health care. Harvard Business Review 91(10), 50-
70. Retrieved from the EBSCOhost database.
• Porter’s work is notable in many health care management circles. Here, he proposes ways to
improve health care and the strategy used going forward.
Website
The Agency for Health Research and Quality (www.ahrq.gov)
• This website provides extensive resources regarding health outcomes and costs.
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MHA618: HEALTH ECONOMICS COURSE GUIDE
Discussions
1. 1st Post Due by Day 1. Post Your Introduction. Introduce yourself to your classmates and the
instructor by stating who you are, where you live, and any interests or aspirations that you have. As part
of your introduction, review the weekly overviews in the left navigation bar and identify topics in the
course that are of particular interest to you. Explain your reasoning as to why you are looking forward to
learning more about these topics. In addition, communicate the relevance of economics within the U.S.
health care system as it pertains to your career aspirations.
Guided Response: Read several of your classmates’ posts and welcome at least three of your peers.
If possible, respond to at least one classmate whose interests differ from yours and at least one whose
interests are similar. Be sure to discuss how learning more about the topics your classmates are
interested might add to your personal and professional knowledge and skills.
2. 1st Post Due by Day 3. Value and Consumer Preference. Prior to engaging in this discussion, read
Chapters 1 and 2 in the text and review any relevant Instructor Guidance. It is suggested that you also
review the recommended articles to glean any helpful information. The idea that value depends on
consumers’ preferences is often considered radical. In your initial post, analyze the economic theories
that are germane to the provision of health services, and comment on how one or two specific model(s)
might explain the framework or context of patient/consumer preference with regard to the health care
services they have experienced. Compare and contrast economic challenges and incentives within
health care’s organizational models that might influence patient preference. How would value (both in
quality and impact of care) differ where you have increase in access and decrease in reimbursement
rates set by most insurance companies?
Guided Response: Read several of your classmates’ posts and provide a substantive written response
to at least two of your peers. Discuss whether or not you agree with the conclusions provided in your
classmate’s initial post. If you disagree, offer an alternative that is better in process and efficiency.
Explain your reasoning and provide at least one reference to support your position. You must also
comment specifically on one aspect of your classmate’s post with which you agree. In addition to
responding to at least two other students’ posts, it is recommended that you reply to at least one person
who responded to your original post by either respectfully defending your conclusion or by listing how
you might implement the changes your classmate suggested.
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MHA618: HEALTH ECONOMICS COURSE GUIDE
3. 1st Post Due by Day 3. The Importance of Economics for Health Care Leaders. Prior to engaging in
this discussion, be sure to review the Chapters 1 and 2 in the text as well as any relevant Instructor
Guidance. It is suggested that you also review the recommended articles to glean any helpful
information. In the present paradigm, it has become evident that operational leaders and strategic
leaders in health care must be able to appraise how economics impacts health care in the United
States. Furthermore, it is critical successful leaders to possess an understanding of the variables and
nuances that shape how supply and demand in this heavily regulated industry so they may observe
trends and opportunities that lead to a functional organizational system.
Imagine that you are a manager running a unit in a rehabilitation center. Up to this point, your primary
population of payers has been elderly patients who come into the center for physical therapy. Recently,
there has been a demographic shift in the community. A large number of your primary population has
moved out of the area or died, which has caused a shift in your revenues. You have been tasked by
your director to illustrate the cost and revenue numbers relative to insurance payouts to ensure that
your cost does not exceed your revenue. Drawing on your current professional expertise and
understanding drawn from the required resources for this week, create an initial post in which you
communicate how the potential payer mix relates economically to changing demographics in your given
community. What potential solutions would you suggest to your director that might overcome the
demographic shift? Analyze economic theories that are germane to your provision of services and
identify one theory that might apply to this specific situation.
Guided Response: Taking on the role of the director of the rehabilitation center, review the posts
provided by your classmates and provide a substantive written response to at least two of your peers.
Did the post effectively communicate the economic issues at hand? Were the suggested solutions
appropriate and manageable given the current situation? In your position as the director of the center,
analyze the role of public policy (e.g., the passing of the Affordable Care Act) in your provision of
services. What other sources of potential capital might you seek out to ensure that the cost to revenue
ratio remains consistent with viability?
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Assignment
1. Due by Day 7. Prepare for the Week Two Assignment: “Final Paper Topic and Area of Interest.”
Although you do not have a graded assignment to turn in this week, it is highly recommended that you
look ahead to the assignment for next week. In Week Two, you will be expected to choose and submit
a topic and area of interest for your Final Paper for this course, which is a completed feasibility study.
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MHA618: HEALTH ECONOMICS COURSE GUIDE
WEEK 2
COURSE CONTENT To be completed during the second week of class.
Overview
Assignment Due Date Format Grading Percent
Finance, Risk, and Cost Day 3
(1st post)
Discussion 3
Overinsured, Underinsured, and Uninsured Day 3
(1st post)
Discussion 3
Feasibility Study Topic and Area of Interest Day 7
Assignment 8
Learning Outcomes
This week students will:
1. Discuss common approaches to managing risk.
2. Create an investment scenario for a potential health services project.
3. Discuss the relationship between cost and quality.
4. Examine major trends in health insurance.
Introduction
Understanding and managing costs and risks are core administrative tasks. Regardless of the mission of the
health organization, leaders must consider cost control a priority. In addition, they must be able to make
decisions even when important information is incomplete or missing. When leaders do not have all the
necessary data, they must appraise the risk to determine if it is worth taking and what the best strategy for
dealing with it might be. In light of this, insurance is all about managing risk. It is important for leaders to
understand how it is structured in both private and public settings.
This week we will be determining the risk and assessing the cost of a proposed venture. You will have the
opportunity to take on the role of the presenter as well as that of the reviewer, which will allow you to
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MHA618: HEALTH ECONOMICS COURSE GUIDE
experience two professional perspectives on the same problem. You will also be delving into the implications of
accessibility and distribution through the lens of health insurance.
Required Resources
Required Text
Lee, R. H. (2015). Economics for health care managers (3rd ed.). Chicago, IL: Health Care Administration
Press. Retrieved from https://redshelf.com
• Chapter 3: An Overview of the Healthcare Financing System
• Chapter 4: Describing, Evaluating, and Managing Risk
• Chapter 5: Understanding Costs
Articles
Daniels, E. B., Dickson, T.C. (1990). Assessing the feasibility, performance of geriatric clinics. Healthcare
Financial Management, 44(2): 30-34. Retrieved from the ProQuest database
• This article will be used in conjunction with your feasibility study assignments.
Democratic Policy & Communications Center. (n.d.) The patient protection and affordable care act [PDF].
Retrieved from http://www.dpc.senate.gov/healthreformbill/healthbill52.pdf
• This online report is the U.S. Senate’s version of pertinent facts related to the Affordable Care
Act.
Leff, B., Burton, L., Mader, S., Naughton, B., Burl, J., Greenough, WB., …Burton, J. R. (2005). Hospital at
Home: Feasibility and outcomes of a program to provide hospital-level care at home for acutely ill older
patients. Annals of Internal Medicine, 143(11): 798-808. Retrieved from ProQuest database.
• This provides an example of a feasibility study.
Recommended Resources
Articles
The Access Project. (2001). A community leader’s guide to hospital finance: Evaluating how a hospital gets
and spends its money. Retrieved from http://www.accessproject.org/downloads/Hospital_Finance.pdf.
• This article provides a community or systems perspective on how hospitals receive payment
and spend money for services to maintain operability of an organization.
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MHA618: HEALTH ECONOMICS COURSE GUIDE
Custer, W. S. (2013). Consumer choice in health insurance. Journal of Financial Service Professionals, 67(4),
25-27. Retrieved from the EBSOhost database.
• Custer (2013) states that “the health insurance market is likely to become more complex with
full implementation of the Affordable Care Act. There is a good deal of research that suggests
that consumers' choices may not be rational when the number of alternatives is large, the
alternatives are complex, and information is limited or costly. Overcoming the limitations in
consumer decision making requires reducing complexity, increasing information, and providing
computational resources.”
Dhingra, S. S., Zack, M. M., Strine, T. W., Druss, B. G., & Simoes, E. (2013). Change in health insurance
coverage in Massachusetts and other New England states by perceived health status: Potential impact
of health reform. American Journal of Public Health, 103(6), e107-e114. doi:10.2105/
AJPH.2012.300997. Retrieved from the EBSOhost database.
• This article examines the impact of health reform in Massachusetts and its public health
component (enacted in 2006) on change in health insurance coverage by perceived health.
Fottler, M. D., & Lanning, J. A. (1986). A comprehensive incentive approach to employee health care cost
containment. California Management Review, 29(1), 75-94. Retrieved from the EBSOhost database.
• The article discusses the use of a comprehensive incentive approach to employee health care
cost containment. A comprehensive approach would involve system controls to shrink the
system as well as incentives for both providers and health care consumers to reduce utilization,
be more price conscious, and provide services more quickly.
Mango, P. D., & Riefberg, V. E. (2009). Three imperatives for improving US health care. Mckinsey Quarterly,
(2), 40-44. Retrieved from the EBSOhost database.
• The article discusses actions that the author feels should be taken to address the high cost of
health care within the United States. Specific problems that the authors feel the U.S.
government should address are discussed, such as the cost associated with treating diseases
related to people's lifestyles and wastes within the health care system
Rohr, R. (2012). Cost control: The new frontier of medical management. Physician Executive, 38(4), 82-83.
Retrieved from the EBSOhost database.
• The article offers the author's insights regarding the medical care cost control in the United
States. The author states that the Affordable Care Act has instructed a reduction in spending
from the current levels. He says that the value-based purchasing will lessen total payments from
the Centers for Medicare and Medicaid Services in the United States.
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Multimedia
Forbes. (2014, December 15). The top health industry trends to watch in 2015 [Video file]. Retrieved from
https://youtu.be/fRym_jyuBc0
• This video reviews how the U.S. healthcare industry will begin to look and feel more like the rest
of the business world: catering to wired customer who expect one-click service and fast access
to data.
Websites
Hospital Corporation of America (http://hcahealthcare.com)
• This is the main website for a major hospital system covering the United States.
Tenet Health System (http://www.tenethealth.com/pages/home.aspx )
• This is a competitor hospital health care system similar in size and scale to Hospital Corporation
of America.
United States Department of Health & Human Services (http://www.hhs.gov/healthcare/rights/)
• This website offers information on the Affordable Care Act from the perspective of the U.S
Department of Health and Human Services, which oversees it.
United States Department of Labor (http://www.bls.gov/ooh/healthcare/)
• The U.S Department of Labor provides an annual review of occupational health statistics as
they relate to market forces.
Vaikom Hospital & Healthcare (http://vaikomhealthcare.com/project-cost-estimates)
• This website offers a sample of the basic tenants that go into a cost estimate and the
breakdown of the variables.
Discussions
1. 1st Post Due by Day 3. Finance, Risk, and Cost. Prior to engaging in this discussion, read Chapters 3
and 4 from the text review any relevant Instructor Guidance. It is suggested that you review the
recommended resources to glean any helpful information. You are an associate director in a 300-bed
hospital located in an urban area. For the purposes of your presentation, the location will be the closest
city to your current residence (this may be your city of residence). A sum of money is available for
investment in the facility. You have been tasked by the hospital CEO to present a possible investment
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MHA618: HEALTH ECONOMICS COURSE GUIDE
scenario in which you renovate your existing facility, expand the current facility, or clinically integrate
your electronic health records (EHRs). There is only enough money to fund one of the potential
projects. Your primary sources of data and information may or may not be reliable. Please see the
“Finance, Risk, and Cost” document for the data needed to create your presentation.
Suggested Resource:
The Top Health Industry Trends to Watch in 2015
Next year the $2.8 trillion U.S. healthcare industry will finally begin to look and feel more like the rest of
the business world: catering to wired customers who expect one-click service and fast access to data.
In this discussion, you will be create a five-minute presentation using PowerPoint and Jing, Screencast-
o-matic, or an alternative program with audio, wherein you propose one of the potential projects and
defend its viability as the best option at the present time. Your PowerPoint presentation slides must
include the following information:
• A basic design of the projected service/project (i.e., the option you are promoting)
• An analysis of the role of public policy in terms of your provision of health care services and
provide justification of your choice
• An explanation of the relevance of the current financial data in terms of the projected outcome
of the project
• A compare and contrast discussion of the economic challenges and incentives related to your
project
Once you have created your PowerPoint presentation, use Jing, Screencast-o-matic, or an alternative
program with audio, to create a screencast of your presentation with voiceover. Include a title for your
presentation in the description box when you publish your screencast. The hospital CEO has limited
your presentation time to three to five minutes, so you will need to incorporate as many characteristics
of an effective speaker as you can within this timeframe. These characteristics may include but are not
limited to storytelling, facts only, pace, and volume. Since there is no video of the presenter (just the
presentation itself), you will not have the benefit of body language, so be sure to create a convincing
screencast. Do not read your slides; rather, elaborate on your bullet points and/or financial maps within
the slides.
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MHA618: HEALTH ECONOMICS COURSE GUIDE
Copy and paste the URL to your screencast into your discussion board response section and attach
your PowerPoint (.ppt) file to the post prior to submitting it. Your presentation must utilize at least two
scholarly sources, in addition to your textbook, that are cited in APA format as outlined in the Writing
Center. All sources used within the presentation must be cited properly on the slides and included on
required reference slide, which will be the last slide of the PowerPoint presentation. Due to the time
limit of your presentation, you are not required to speak or read through the reference slide. However,
you must include your reference list within the discussion post along with the URL for your screencast
and submit your PowerPoint presentation by attaching the PowerPoint (.ppt) file to your initial
discussion post.
Guided Response: Read several of your classmates’ posts and provide a substantive written response
to at least two of your peers. Taking on the role of the hospital CEO, review the presentations provided
by at least two of your peers. Evaluate the social issues that influenced the choice of project. Does the
initiative match the mission and vision of the facility? Does the presentation effectively defend the
project in terms of financial impact on the facility? Will the project meet regulatory needs? Is the cost of
the project worth the financial risk? Why, or why not? In addition to responding to at least two other
students’ posts, it is recommended that you reply to at least one person who responded to your original
presentation by either respectfully defending your conclusions or by listing how you might consider
other alternatives.
2. 1st Post Due by Day 3. Overinsured, Underinsured, and Uninsured. Prior to engaging in this
discussion, be sure to read Chapters 4 and 5 from the textbook and review the information included in
the “Patient Protection and Affordable Care Act” detailed summary, the information provided on the
U.S. Department of Health and Human Services website, and any relevant Instructor Guidance.
Presently, the United States is a fragmented system that offers a misdistribution of “haves” and “have
nots” which impact the cost of delivering health care. The United States is currently a nation of
overinsured, underinsured, and uninsured people. In light of the passage of the Affordable Care Act
(ACA), how do you see these issues being corrected so that a majority of the population has access to
quality health care? In an initial post of 250-300 words, communicate the relevant aspects of the ACA
that will impact these issues. Analyze and describe how the role of public policy will affect changes in
this distribution. Evaluate and explain some of the social-cultural issues that might present potential
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MHA618: HEALTH ECONOMICS COURSE GUIDE
problems as this plays out across the country. What implications associated with the ACA might lead to
a paradigm shift in the ways in which we view access to health care?
Guided Response: Read several of your classmates’ posts and provide a substantive written response
to at least two of your peers. Did your classmates identify the same or different potential problems than
you included in your post? How might you reconsider your original position based on the problems
presented by your peers? What specific aspects of the paradigm shift did your classmates present that
made you reflect differently on the potential outcomes of the ACA? Explain your reasoning.
Assignment
1. Due by Day 7. Feasibility Study Topic and Area of Interest. A detailed feasibility study is an
essential element in the process of diligently assessing any new health services business venture.
According to data released by the Bureau of Labor Statistics, the health care industry is currently one of
the fastest growing fields in the United States, and it is projected that the field will grow by 22 percent
by 2018. This is compared to an 11 percent average growth rate for all other industries (United States
Department of Labor, 2012). Whether you are considering new medical service lines, an expansion of
your current operation, or any other type of health care business venture, a feasibility study is an
essential planning tool for any future health care leader.
In this assignment, you will be taking the first step toward the completion of your final assignment by
settling on the topic for your feasibility study. Please read the Leff, et al (2005) article, “Hospital at
Home: Feasibility and Outcomes of a Program to Provide Hospital-Level Care at Home for Acutely Ill
Older Patients.” Reflect on the procedures and content found in the article to aid you in choosing and
shaping a topic for your feasibility study. The topic you select should be of interest and meaningful to
you and your career, and it must be related to health care delivery.
Create a document that includes the following:
• Title: Proposed title for the feasibility study
• Topic: Topic of the feasibility study
• Description: A brief description (250-500 words) of how the proposal will impact the quality,
availability, accessibility, and affordability of care
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MHA618: HEALTH ECONOMICS COURSE GUIDE
• List of Resources: A list of five scholarly sources that you plan to use as you complete your
feasibility study
Writing the Feasibility Study Topic and Area of Interest
The Paper
• Must be one to two double-spaced pages in length, excluding the title and reference pages, and
formatted according to APA style as outlined in the Writing Center.
• Must include a title page with the following:
o Title of paper
o Student’s name
o Course name and number
o Instructor’s name
o Date submitted
• Must address the topic with critical thought.
• Must include the listed headings with the content required under each.
• Must use at least five scholarly sources that were published within the last five years, including
a minimum of three peer-reviewed sources from the University of Arizona Global Campus
Library.
• Must document all sources in APA style as outlined in the Writing Center.
• Must include a separate reference page that is formatted according to APA style as outlined in
the Writing Center.
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MHA618: HEALTH ECONOMICS COURSE GUIDE
WEEK 3
COURSE CONTENT To be completed during the third week of class
Overview
Assignment Due Date Format Grading Percent
Demand Theory and Its Application Day 3
(1st post)
Discussion 3
Appreciating Supply and Demand Analysis Day 3
(1st post)
Discussion 3
Prepare for the Week Four Assignment:
“Concept Paper Submission”
Day 7
Assignment N/A
Learning Outcomes
This week students will:
1. Develop microeconomic models based on the health service demands of a given population.
2. Evaluate publicly available data tools that assist in the formulation of basic demand and supply curves.
Introduction
Health care markets are in a constant state of flux in relation to supply and demand theory. Policies change.
Prices rise and fall. Volumes rise and fall. Having an understanding of the supply and demand curve will help
any health care leader better forecast the effects of changes in policy or demographics. Furthermore, any
working organization must keep in mind the notion that “with no margin, there is no mission.” It is important to
understand where leaders can reasonably maximize profits to keep a system financially viable and remain
competitive.
This week we will be utilizing demand theory to defend a financial venture within a health care organization.
You will have the opportunity to practice research gathering and presentation skills that are crucial to your
professional success. Further, you will be evaluating publicly available data tools and formulating demand and
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MHA618: HEALTH ECONOMICS COURSE GUIDE
supply curves to examine and explain pricing and value-based care. You are encouraged to look ahead to the
Week Four written assignment as you complete this week’s work.
Required Resources
Required Text
Lee, R. H. (2015). Economics for health care managers (3rd ed.). Chicago, IL: Health Care Administration
Press. Retrieved from https://redshelf.com
• Chapter 7: The Demand for Health Care Products
• Chapter 10: Supply and Demand Analysis
• Chapter 11: Maximizing Profits
Recommended Resources
Articles
Block, D. (2013). Disruptive innovation: Contributing to a value-based health Care System. Physician
Executive, 39(5), 46-52. Retrieved from the EBSCOhost database.
• The article discusses how hospitals can use disruptive innovation to improve health care quality,
safety and outcomes by reducing the costs of healthcare delivery. The author says health care
delivery in the United States is at least 20 years behind the development of other industries in
the country.
Ellis, R. P., & McGuire, T. G. (1993). Supply-side and demand-side cost sharing in health care. Journal Of
Economic Perspectives, 7(4), 135-151. Retrieved from the EBSCOhost database.
• This article focuses on the supply side and demand side of cost sharing in health care. Ellis &
McQuire (1993, p.137) states that ”economists and others concerned with health care policy
have debated the meaning of "demand" in health care. After all, as Arrow (1963) emphasized
early on, the relationship between patients and their physicians (and other health care
providers) involves agency, information, trust, and professionalism. A key unresolved issue in
health policy is the magnitude of this provider-induced demand, and how it is determined.”
Heroman, W. M., Davis, C. B., & Farmer, J. L. (2012). Demand forecasting and capacity management in
primary care. Physician Executive, 38(1), 30-34. Retrieved from the EBSCOhost database.
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MHA618: HEALTH ECONOMICS COURSE GUIDE
• The article examines how a practical approach to demand forecasting and capacity
management helps primary care clinics run smoothly and efficiently. The authors state that a
demand forecast determines the gap relative to the capacity of the practice to provide health
care which can affect all the patient-centered medical home (PCMH) principles.
Lillrank, P., Groop, P., & Malmström, T. J. (2010). Demand and supply-based operating modes: A framework
for analyzing health care service production. Milbank Quarterly, 88(4), 595-615. doi:10.1111/j.1468-
0009.2010.00613.x. Retrieved from the EBSCOhost database.
• “The structure of health organizations that provide services should reflect the possibilities of and
constraints on production that arise from the market segments they serve. Organizational
segmentation in health care is based on urgency and severity as well as disease type, bodily
function, principal method, or population subgroup. The result is conflicting priorities, goals, and
performance metrics. A managerial perspective is needed to identify activities with similar
requirements for integration, coordination, and control” (Lillrank, Groop, & Malrnstrom, 2010)..
Yu, T., & Hong Yih, C. (2007). Is health care really a luxury? A demand and supply approach. Applied
Economics, 39(9), 1127-1131. doi:10.1080/00036840500461857 Retrieved from the EBSCOhost
database.
• Yu & Hong (2007) suggest that many studies have found strong and positive relationship
between per capita income and health care expenditure. These studies usually adopt the
assumptions that (1) the relationships among the variables are constant; and/or (2) the supply-
side market for health care could be treated by using standard demand functions models. To
take into account of the supply side of health care, we use the demand and supply approach
with the co-integration model to re-examine this issue.
Discussions
1. 1st Post Due by Day 3. Demand Theory and Its Application. Prior to engaging in this discussion,
please read Chapters 6 and 9 in the text and review any relevant Instructor Guidance. It is suggested
that you review the recommended articles to glean any helpful information. In this discussion, you will
be taking on the role of an associate director of a hospital who is considering the proposed opening of
an urgent care clinic about 20 miles from your main campus. You have been charged with gathering
demographic information that might affect the demand for the new clinic and creating a presentation
that will be delivered to the hospital CEO. Consider what data might be relevant and why. What would
you want to show the CEO to prove that this project would be feasible for the organization? As with the
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MHA618: HEALTH ECONOMICS COURSE GUIDE
“Finance, Risk, and Cost” discussion in Week Two, you will be creating a five-minute presentation using
PowerPoint and Jing, Screencast-o-matic, or an alternative program with audio, to present your findings
on the feasibility of this project to your CEO.
Today’s health care landscape is placing new importance on the economics of health care. Reflecting
on the exercises you have completed thus far and incorporating information from the text, analyze how
demand theory applies to public policy and the economics of health services. What elements,
responsive to the specific health care service demands of your given population, would you want to
present as you develop a microeconomic model based on this proposed opening of an urgent care
clinic?
Your PowerPoint presentation slides must include the following information:
• Your basic microeconomic model of the projected service/project
• An analysis of the role that public policy plays in terms of your provision of health care services
• A justification of your model
• The relevance of the current financial data in terms of the projected outcome of the project
• A compare and contrast discussion of the economic challenges and incentives related to your
project
Once you have created your PowerPoint presentation, use Jing, Screencast-o-matic, or an alternative
program with audio, to create a screencast of your presentation with voiceover. Include a title for your
presentation in the description box when you publish your screencast. The hospital CEO has limited
your presentation time to three to five minutes, so you will need to incorporate as many characteristics
of an effective speaker as you can within this timeframe.
Guided Response: Read several of your classmates’ posts and provide a substantive written response
to at least two of your peers. In your responses, you will take on the role of the hospital CEO. As the
CEO, you have the responsibility of presenting this work in front of the Board of Regents that has to
authorize the “go ahead” to fund the project. With this in mind, review the presentations provided by at
least two of your peers. Does the initiative match the mission and vision of the facility? Does the
presentation effectively defend the project in terms of financial impact on the facility? Will the project
meet regulatory needs? Is the cost of the project worth the financial risk? Why, or why not? In addition
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MHA618: HEALTH ECONOMICS COURSE GUIDE
to responding to at least two other students’ posts, it is recommended that you reply to at least one
person who responded to your original presentation by either respectfully defending your conclusions or
by listing how you might consider other alternatives.
1. 1st Post Due by Day 3. Appreciating Supply and Demand Analysis. Prior to engaging in this
discussion, please review Chapters 6 and 9, read Chapter 10 in the text, and review any relevant
Instructor Guidance. It is suggested that you review a few of the recommended articles to glean any
helpful information. Supply and demand analysis aids health care leaders in ascertaining the effects of
changes in policy on service lines that impact a community’s health (e.g., whether to expand existing
services or perhaps close services). Identify and evaluate publicly available tools that provide data and
assist in formulating the basic shapes of demand and supply curves. Communicate and elaborate on
the relevance of these economic indicators in terms of pricing. Evaluate and comment on the social-
cultural implications of value-based care.
Guided Response: Read several of your classmates’ posts and provide a substantive written response
to at least two of your peers. Discuss whether or not you agree with the conclusions provided in your
classmate’s initial post. Regardless of whether you agree or disagree, offer an alternative as to why
value-based care may impact the system. Specifically speak to the change in the supply and demand
curves that we have traditionally understood. Provide at least one scholarly reference that supports
your comments. Comment on any insights you gained from your classmate’s post.
Assignment
1. Due by Day 7. Prepare for the Week Four Assignment: “Concept Paper Submission.” Although
you do not have a graded assignment to turn in this week, it is highly recommended that you look
ahead to the assignment for next week. In Week Four, you will create a draft or concept paper for your
Final Paper based on the approved topic and area of interest you submitted in Week Two.
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MHA618: HEALTH ECONOMICS COURSE GUIDE
WEEK 3
COURSE CONTENT To be completed during the fourth week of class
Overview
Assignment Due Date Format Grading Percent
Economic Analyses and Interventions Day 3
(1st post)
Discussion 3
Pricing and Transparency Day 3
(1st post)
Discussion 3
Concept Paper Submission Day 7
Assignment 15
Learning Outcomes
This week students will:
1. Compare and contrast cost benefit analysis and cost utility analysis.
2. Analyze the role of pricing transparency in health care.
3. Develop a SWOT analysis for a proposed health care services project.
Introduction
Price setting and profitability depend on several factors as stated by Porter’s model, which include nature of
rivalry, bargaining power of customers (patients) and risk of entry by potential rivals. This week, we will explore
health administrative innovations with an eye toward health care delivery and service demands. It is critical to
appraise projects using cost benefit analysis and utility analysis to ascertain if a procedure is worth the cost or
if a specific process can be done more efficiently. In addition, this has to take into account pricing. As noted in
our text, “Pricing is a continuing challenge for healthcare organizations for three reasons” (Lee, 2009, p. 169).
First, leaders don’t have clear pricing strategy. Second, leaders lack the necessary data to make a good
decision and, finally, one pricing model does not fit every department or organization (Lee, 2009). This week
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MHA618: HEALTH ECONOMICS COURSE GUIDE
we will explore aspects of pricing transparency as well as ideas on how clear strategies and accurate data are
necessary in good decision making.
Required Resources
Required Text
Lee, R. H. (2015). Economics for health care managers (3rd ed.). Chicago, IL: Health Care Administration
Press. Retrieved from https://redshelf.com
• Chapter 12: Pricing
• Chapter 14: Economic Analysis of Clinical and Managerial Interventions
• Chapter 15: Profits, Market Structure, and Market Power
Articles
Daniels, E. B., Dickson, T.C. (1990). Assessing the feasibility, performance of geriatric clinics. Healthcare
Financial Management, 44(2): 30-34. Retrieved from the ProQuest database
• This article will be used in conjunction with your feasibility study assignments.
University of Kansas. (2013) Community tool box. Retrieved from http://ctb.ku.edu/en/table-of-
contents/assessment/assessing-community-needs-and-resources/swot-analysis/main
• This webpage provides an overview of SWOT analysis from the community context.
Multimedia
Demand Metric (2012, November 5). Feasibility study template [Video file]. Retrieved from
http://www.youtube.com/watch?v=gNsimuW0dJU
• This video shows you what goes into a feasibility study as a template used.
Recommended Resources
Articles
Luxton, D. D. (2013). Considerations for planning and evaluating economic analyses of telemental health.
Psychological Services, 10(3), 276-282. doi:10.1037/a0030658. Retrieved from the EBSOhost
database.
• This article discusses the economic evaluation of telemental health (TMH) to inform ways to
decrease the cost of delivering care, to improve access to care, and to make decisions about
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MHA618: HEALTH ECONOMICS COURSE GUIDE
the allocation of resources. Previous reviews of telehealth economic analysis studies have
concluded that there are significant methodological deficiencies and inconsistencies that limit
the ability to make generalized conclusions about the costs and benefits of telehealth programs
(Luxton, 2013).
Guo, J., Wade, T., Pan, W., & Keller, K. (2010). School-based health centers: Cost-benefit analysis and impact
on health care disparities. American Journal of Public Health, 100(9), 1617-1623.
doi:10.2105/AJPH.2009.185181. Retrieved from the EBSOhost database.
• This article evaluated the impact of school-based health centers--which provide essential health
care for students by aiming to eliminate many access barriers--on health care access disparities
and conducted a cost--benefit analysis.
Hsu, S. (2011). Cost information and pricing: Empirical evidence. Contemporary Accounting Research, 28(2),
554-579. doi:10.1111/j.1911-3846.2010.01051.x. Retrieved from the EBSOhost database.
• The article examines the relationship between service prices and unit-allocated capacity costs in
firms that have committed themselves to long-term capacity requirements. Specifically, the
author studies a private hospital in California using data gleaned from the years 1993 through
1999.
Saleh, S. S., Freire, C., Morris-Dickinson, G., & Shannon, T. (2012). An effectiveness and cost-benefit analysis
of a hospital-based discharge transition program for elderly medicare recipients. Journal of the
American Geriatrics Society, 60(6), 1051-1056. doi:10.1111/j.1532-5415.2012.03992.x. Retrieved from
the EBSOhost database.
• This paper investigated the business case of post discharge care transition (PDCT) among
Medicare beneficiaries by conducting a cost-benefit analysis.
Smith, G. (2013). Medical price transparency. Insurance Advocate, 124(7), 40. Retrieved from the EBSOhost
database.
• The author reflects on the challenges in bringing transparent pricing in health care and
discusses the steps to be taken to resolve the problem. He mentions that medical facilities need
to exhibit transparent pricing to emerge from a competitive market and market economy. He
informs that a tertiary hospital from Oklahoma City, Oklahoma is providing upfront pricing for
procedures for an outpatient center
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MHA618: HEALTH ECONOMICS COURSE GUIDE
Discussions
1. 1st Post Due by Day 3. Economic Analyses and Interventions. Prior to engaging in this discussion,
please read Chapters 13 and 14 in the text and review any relevant Instructor Guidance. It is suggested
that you review the recommended articles to glean any helpful information. Analyze and comment on
economic analyses of health administrative innovations that are germane to the provision of health
services. How have these innovations become more important in health care delivery within the context
of the Affordable Care Act? Develop a list of similarities and differences between cost benefit analysis
and cost effectiveness analysis as they pertain to specific health care service demands. Compare and
contrast economic challenges and incentives as they relate specifically to cost benefit and cost
effectiveness analyses.
Guided Response: Read several of your classmates’ posts and provide a substantive written response
to at least two of your peers. Discuss whether or not you agree with the conclusions provided in your
classmate’s initial post. Choose one aspect with which you disagree and offer an alternative that
illustrates innovations in health care delivery. Explain why this alternative would be a better option and
provide at least one peer-reviewed reference outside of your textbook to support your position. You
must also comment specifically on one aspect of your classmate’s post with which you agree. Provide a
brief explanation as to why the statements were effective, and support your opinion and assertions with
appropriate research. In addition to responding to at least two other students’ posts, it is recommended
that you reply to at least one person who responded to your original post by either respectfully
defending your conclusions or by listing how you might implement the changes your classmate
suggested.
2. 1st Post Due by Day 3. Pricing and Transparency. Prior to engaging in this discussion, please read
Chapter 11 in your text and review any relevant Instructor Guidance. It is suggested that you review the
recommended articles to glean any helpful information. Analyze the role of the paradigm shift under the
Affordable Care Act and discuss how transparency will play a greater role in pricing of health care. In
your opinion, will consumers begin to demand increasing transparency in pricing? Provide at least one
peer-reviewed reference outside of your textbook to support your position. Do you believe accrediting
commissions (e.g., the Joint Commission) will demand greater transparency in pricing? How will these
demands be weighted as compared to individual consumers’ demands? Again, be sure to cite research
that supports your statements.
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MHA618: HEALTH ECONOMICS COURSE GUIDE
Guided Response: Read several of your classmates’ posts and provide a substantive written response
to at least two of your peers. Discuss whether or not you agree with the conclusions provided in your
classmate’s initial post. Choose one aspect with which you disagree and offer an explanation as to why
your assertions regarding the new paradigm shift toward transparency will enhance the consumer
experience. Explain how your assertions more accurately tie in with the potential demands of
accreditation groups like the Joint Commission. Provide at least one reference to support your position.
Comment specifically on one aspect of your classmate’s post with which you agree. Provide a brief
explanation as to why your colleague’s statements were effective, and bring in research that supports
your assertions. In addition to responding to at least two other students’ posts, it is recommended that
you reply to at least one person who responded to your original post either by respectfully defending
your conclusion or by listing how you might implement the changes your classmate suggested.
Assignment
1. Due by Day 7. Concept Paper Submission. The primary purpose of the Concept Paper is to obtain
instructor feedback to ensure that you are on track with the completion of your feasibility study. The
complete instructions for the feasibility study can be found in Week Six of the online course.
The Concept Paper is a draft version of your Final Paper with the initial list of relevant scholarly
sources. In this draft, be certain to include and (at least) briefly address the content of the headings
listed in the Final Paper instructions for Week Six.
You must include a preliminary Strengths, Weaknesses, Opportunities, and Threats SWOT analysis for
your chosen project. For further assistance, please view the Feasibility Study Template video and view
the online article “Community Assessment,” both of which include specific information on elements of
the SWOT analysis required for your final paper.
Remember, your concept paper is a draft, NOT the final product. Submit your Concept Paper with the
required headings to your instructor by the end of this week. Be sure to review the article, “Assessing
the Feasibility, Performance of Geriatric Clinics,” for further information as you complete your
assignment. Be certain to include your list of references with your draft.
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MHA618: HEALTH ECONOMICS COURSE GUIDE
Writing the Feasibility Study Concept Paper
The Paper
• Must be a minimum of three double-spaced pages in length, excluding title and reference
pages, and formatted according to APA style as outlined in the Writing Center.
• Must include a title page with the following:
o Title of paper
o Student’s name
o Course name and number
o Instructor’s name
o Date submitted
• Must begin with an introductory paragraph that has a succinct thesis statement.
• Must address the topic of the paper with critical thought.
• Must include the listed headings in the Week Six feasibility study instructions with the content
required under each.
• Must end with a conclusion that reaffirms your thesis.
• Must list at least six scholarly sources that were published within the last five years, including a
minimum of three peer-reviewed sources from the University of Arizona Global Campus Library.
• Must document all sources in APA style as outlined in the Writing Center.
• Must include a separate reference page that is formatted according to APA style as outlined in
the Writing Center.
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MHA618: HEALTH ECONOMICS COURSE GUIDE
WEEK 5
COURSE CONTENT To be completed during the fifth week of class
Overview
Assignment Due Date Format Grading Percent
Inseparability of Markets and Regulations Day 3
(1st post)
Discussion 3
Applying Game Theory to Strategy Day 3
(1st post)
Discussion 3
Prepare for the Week Six Final Paper Day 7
Assignment N/A
Learning Outcomes
This week students will:
1. Analyze the policy creation role professional licensing groups have on the economics of health
services.
2. Apply game theory to business strategy.
3. Evaluate the influence economic culture and social issues have on pricing competition.
Introduction
Strategic thinking is critical for any health care leader. In any market, leaders routinely negotiate contracts and
quest for market power and control. It is important to keep in mind the extensive role that regulation plays in
health care. As we have seen in previous weeks, markets and regulation are inseparable. This week, we will
examine the role of health profession licensing agencies in the creation of policies within the profession itself
as well as on the regulation of health services. We will also learn how using game theory allows for leaders to
simulate and identify the consumer’s best response, how each may behave, and how the outcome may be one
of a cooperative or non-cooperative game in the context of understanding current regulations and rules. In
addition, we will develop models that are responsive to the service demands of a specified market and apply
game theory in the creation of a business strategy.
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MHA618: HEALTH ECONOMICS COURSE GUIDE
Required Resources
Required Text
Lee, R. H. (2015). Economics for health care managers (3rd ed.). Chicago, IL: Health Care Administration
Press. Retrieved from https://redshelf.com
• Chapter 17: Regulation
• Chapter 18: Behavioral Economics
Recommended Resources
Articles
Bowblis, J. R., & Lucas, J. A. (2012). The impact of state regulations on nursing home care practices. Journal
of Regulatory Economics, 42(1), 52-72. doi:http://dx.doi.org.proxy-library.ashford.edu/10.1007/s11149-
012-9183-6. Retrieved from the EBSCOhost database.
• This article assesses the effect of the minimum quality standards of deficiencies and nurse
staffing requirements on the nursing home care practices of physical restraint, indwelling urinary
catheter, and feeding tube use. National longitudinal data on nursing homes reveal that the
effect of specific deficiency citations on care practice use depends on the clinical
complementarity or substitutability of the deficiency and the specific care practice.
Cantor, J. C., Thompson, F. J., & Farnham, J. (2013). States' commitment to medicaid before the Affordable
Care Act: Trends and implications. Inquiry, 50(1), 71-84. Retrieved from the EBSCOhost database.
• Medicaid insures more than 65 million low-income people, and the Affordable Care Act of 2010
gives states the option to enroll millions more. Historical trends in state Medicaid effort possess
important implications for health policy going forward. Nearly all states steadily ratcheted up
their Medicaid effort in the period from 1992 to 2009, holding out promise that most will sustain
their programs and ultimately participate in the expansion authorized by the Affordable Care
Act.
Dowd, S. (2004). Applied game theory for the hospital manager: Three case studies. Health Care Manager,
23(2), 156-161. Retrieved from the EBSCOhost database.
• This article reviews the more complex aspects of game theory than those presented in a recent
HCM article. Following a basic overview of terminology and simplified examples, case studies
are presented to show the hospital manager how game theory is a useful modeling strategy for
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MHA618: HEALTH ECONOMICS COURSE GUIDE
predicting human interactions and the potential outcomes of certain decisions, especially
economic ones.
Levaggi, L., & Levaggi, R. (2010). Strategic costs and preferences revelation in the allocation of resources for
health care. International Journal of Health Care Finance and Economics, 10(3), 239-256.
doi:http://dx.doi.org.proxy-library.ashford.edu/10.1007/s10754-010-9079-x. Retrieved from the
EBSCOhost database.
• This article examines the resources allocation process in the internal market for health care in
an environment characterized by asymmetry of information. We analyze the strategic behavior
of the provider and show how, by misreporting its cost function and reservation utility, it might
shift the allocation of resources away from the purchaser's objectives.
Westhoff, W. W., Cohen, C. F., Cooper, E., Corvin, J., & McDermott, R. J. (2012). Cooperation or competition:
Does game theory have relevance for public health? American Journal of Health Education, 43(3), 175-
183. Retrieved from the ProQuest database.
• In this paper, we use game theory to understand decisions to cooperate or to compete in the
delivery of public health services. Health care is a quasi-public good that is often associated
with altruistic behavior, yet it operates in an increasingly competitive environment. With
mounting health care regulation and changes in privatization, altruistic arguments give way to
more competitive rationales for market decisions.
Discussions
1. 1st Post Due by Day 3. Inseparability of Markets and Regulations. Prior to engaging in this
discussion, please read Chapter 17 in the text and review any relevant Instructor Guidance. It is
suggested that you review the recommended articles to glean any helpful information. To begin you
initial post, research one of the health profession licensing agencies in your state. Analyze and
comment on the role this professional licensing group plays in the creation of policy within the
profession as well as the impact those policies potentially have on the economics of health services.
Then, specifically look at the composition of the licensing agency’s board of directors. Describe the
present composition of the board membership. Evaluate the social-cultural issues that might influence
health economics in your state based on the diversity of the board in question. Is the present
composition a fair representation of the community the board is supposed to serve? What, if any,
consumer representation exists on the board? Compare and contrast economic challenges and
incentives among health care’s organizational models such as the licensing agency you have selected.
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MHA618: HEALTH ECONOMICS COURSE GUIDE
Guided Response: Read several of your classmates’ posts and provide a substantive written response
to at least two of your peers. Discuss whether or not you agree with the conclusions provided in your
classmate’s initial post. Choose one aspect with which you disagree and offer your ideas as to how the
licensing agency can remain relevant in the new health care setting under the Affordable Care Act.
Provide at least one peer-reviewed reference outside of your textbook to support your position. You
must also comment specifically on one aspect of your classmate’s post with which you agree. Provide a
brief explanation as to why the statements were effective, and support your opinion and assertions with
research. In addition to responding to at least two other students’ posts, it is recommended that you
reply to at least one person who responded to your original post either by respectfully defending your
conclusion or by listing how you might implement the changes your classmate suggested.
2. 1st Post Due by Day 3. Applying Game Theory to Strategy. Prior to engaging in this discussion,
please read Chapter 16 in the text and review any relevant Instructor Guidance. It is suggested that you
review the recommended articles to glean any helpful information. Imagine that you own a pharmacy in
your area. One of your competitors launches a “We will not be undersold” campaign, which promises
consumers 150 % of any difference between its prices and the advertised prices of other pharmacies.
Evaluate the social issues in your community as well as the economic culture that is influencing this
type of pricing competition. Develop and describe a microeconomic model that is responsive to the
service demands of your market. Based on your conclusions, how would you react to this situation and
with what business strategy would you approach this? How might you apply game theory to the
creation of your strategy?
Guided Response: Read several of your classmates’ posts and provide a substantive written response
to at least two of your peers. Discuss whether or not you agree with the conclusions provided in your
classmate’s initial post. Choose one aspect with which you disagree and offer an option of how game
theory could illustrate a coherent framework to best react to a competitor. Explain why you believe this
is a better option than what your classmate already proposed, and provide at least one scholarly
reference to support your position. You must also comment specifically on one aspect of your
classmate’s post with which you agree. Provide a brief explanation as to why the proposed course of
action would be effective, and support your opinion and assertions with research. In addition to
responding to at least two other students’ posts, it is recommended that you reply to at least one person
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MHA618: HEALTH ECONOMICS COURSE GUIDE
who responded to your original post by either respectfully defending your conclusion or by listing how
you might implement the changes your classmate suggested.
Assignment
1. Due by Day 7. Prepare for the Week Six Final Paper. Although you do not have a graded assignment
to turn in this week, it is highly recommended that you look ahead to the assignment for next week. In
Week Six, you will be expected to turn in your Final Paper based on the approved topic and area of
interest you submitted in Week Two and the feedback you received on your Concept Paper Submission
in Week Four.
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MHA618: HEALTH ECONOMICS COURSE GUIDE
WEEK 6
COURSE CONTENT To be completed during the sixth week of class
Overview
Assignment Due Date Format Grading Percent
Consumer Incentives Day 3
(1st post)
Discussion 3
Opportunism in Health Care Day 3
(1st post)
Discussion 3
Final Paper Day 7 Assignment 39
Learning Outcomes
This week students will:
1. Evaluate the influence of social-cultural issues on adverse selection in insurance markets.
2. Analyze the influence that public policy has on the operational costs of health services centers.
3. Create a feasibility study for a student proposed health care services project.
Introduction
This week presents often neglected aspects of a health care manager’s job: opportunism and incentives. Lee
(2009) suggests that “vendors often know more about the strength and weakness of their products than do
purchasers. Subordinates know more about the effort they have put into an assignment than do their superiors”
(p.183). One must view this asymmetric challenge as an opportunity to grow and align the interests of all
stakeholders. This week, we will examine appropriate incentives and strategize how to best employ them. We
will also evaluate conditions of and propose strategies for reducing adverse selection in health insurance within
specific markets.
Required Resources
Required Text
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MHA618: HEALTH ECONOMICS COURSE GUIDE
Lee, R. H. (2015). Economics for health care managers (3rd ed.). Chicago, IL: Health Care Administration
Press
• Chapter 13: Asymmetric Information and Incentives
Articles
Daniels, E. B., Dickson, T.C. (1990). Assessing the feasibility, performance of geriatric clinics. Healthcare
Financial Management, 44(2): 30-34. Retrieved from the ProQuest database
• This article will be utilized as reference in conjunction with your feasibility study assignments.
Korda, H., & Eldridge, G. N. (2011). Payment incentives and integrated care delivery: Levers for health system
reform and cost containment. Inquiry 48(4), 277-287. doi:10.5034/inquiryjrnl_48.04.01. Retrieved from
the EBSCOhost database.
• This article reviews evidence about integrated care delivery, payment methods, and financial
incentives to improve value in health care purchasing. It also addresses how these approaches
can be used to advance health system change.
Rice, T. (1997). Physician payment policies: Impacts and implications. Annual Review of Public Health, 18(1),
549. Retrieved from the EBSCOhost database.
• This article reviews recent changes in physician payment policies, examines evidence on their
impacts, and discusses their implications for researchers and policy makers. It also develops a
conceptual framework to help explore the economic incentives inherent in different physician
payment schemes.
Recommended Resources
Articles
Arrow, K. J. (1963). Uncertainly and the welfare of economics of medical care. The American Economic
Review, 53(5), 941-973. Retrieved from
http://stevereads.com/papers_to_read/uncertainty_and_the_welfare_economics_of_medical_care.pdf
• This article is a sentinel paper discussing the issue of uncertainly and economic provisions in
health care.
Davis, K., & Guterman, S. (2007). Rewarding excellence and efficiency in medicare payments. Milbank
Quarterly, 85(3), 449-468. doi:10.1111/j.1468-0009.2007.00495.x. Retrieved from the EBSCOhost
database.
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MHA618: HEALTH ECONOMICS COURSE GUIDE
• This article examines the variations in cost and quality in the provision of episodes of care and
describes how a pay-for-performance payment system could be designed to narrow those
variations and serve as a transition to a new Medicare payment policy that would align
physicians' incentives with improvements in both quality and efficiency.
Greenwald, L. M. (2000). Medicare risk-adjusted capitation payments: From research to implementation.
Health Care Financing Review, 21(3), 1. Retrieved from the EBSCOhost database.
• The article introduces the reader to the concept of risk adjustment and its implications on
payment models in health care.
Discussions
1. 1st Post Due by Day 3. Consumer Incentives. Prior to engaging in this discussion, please read
Chapter 12 in the text and review any relevant Instructor Guidance. It is suggested that you review the
recommended articles to glean any helpful information. Imagine that you run a nursing home facility in
your area. Analyze and comment on the role public policy has in the economic aspect of running this
type of health services center. Compare and contrast the economic challenges and incentives this type
of health care model presents. What are some of the ways in which you could inform or signal potential
consumers that your nursing home is of high quality? Evaluate the social-cultural issues that influence
the consumers of this type of health service. Which of your proposed methods are most apt to be
reliable signals that significantly communicate to consumers so they are able to make more informed
decisions?
Guided Response: Read several of your classmates’ posts and provide a substantive written response
to at least two of your peers. Discuss whether or not you agree with the conclusions provided in your
classmate’s initial post. Choose one aspect with which you disagree and offer alternative ways in which
your colleague’s nursing home might genuinely deliver the quality care expected by consumers. Explain
how supporting data can be made transparent so that it makes sense to the consumer. Provide at least
one reference to support your position. You must also comment specifically on one aspect of your
classmate’s post with which you agree. Provide a brief explanation as to why the proposed methods
were effective, and support your opinion and assertions with research. In addition to responding to at
least two other students’ posts, it is recommended that you reply to at least one person who responded
to your original post by either respectfully defending your conclusion or by listing how you might
implement the changes your classmate suggested.
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MHA618: HEALTH ECONOMICS COURSE GUIDE
2. 1st Post Due by Day 3. Opportunism in Healthcare. Prior to engaging in this discussion, please read
Chapter 12 in the text, read the Rice (1997) and the Korda and Eldridge (2011) articles, and review any
relevant Instructor Guidance. It is suggested that you also take a moment to review a few of the
recommended articles to glean any potential helpful information. Opportunism in health care is
especially perceptible in the health insurance markets. Consider the area in which you live, specifically
your state and local communities. Evaluate the social-cultural issues that are influencing adverse
selection in insurance markets. Propose some strategies for reducing adverse selection in health
insurance within these markets. Develop a microeconomic model that is responsive to your local
service demands. Communicate how these issues are relevant to the economics of the greater U.S.
health care system. What are the future implications with the Affordable Care Act?
Guided Response: Read several of your classmates’ posts and provide a substantive written response
to at least two of your peers. In your responses, imagine that you are an associate director of a health
insurance company and have been given the charge of examining how the Affordable Care Act will
allow your company to thrive and grow under the increasing constraints of reduced reimbursement
rates. How might your classmate’s proposed strategies affect your plans? In what ways would the
microeconomic model your classmate described adversely affect your profit margin? In what ways
might the model benefit your profitability? Provide at least one reference to support each of your
positions. In addition to responding to at least two other students’ posts, it is recommended that you
reply to at least one person who responded to your original post by either respectfully defending your
conclusions or by listing how you might implement the changes your classmate suggested.
Assignment
1. Due by Day 7. Final Paper. The complete instructions for the Final Paper can be found in Week Six of
your online course or in the “Components of Course Evaluation” section of this guide.
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MHA618: HEALTH ECONOMICS COURSE GUIDE
COURSE MAP
The course map illustrates the careful design of the course through which each learning objective is supported
by one or more specific learning activities in order to create integrity and pedagogical depth in the learning
experience.
Learning Outcome Week Assignment
1. Communicate the relevance of
economics to the U.S. health care
system.
1
1
2
2
2
3
3
4
6
▪ Post Your Introduction – Discussion
▪ The Importance of Economics for
Health Care Leaders – Discussion
▪ Finance, Risk, and Cost –
Discussion
▪ Overinsured, Underinsured, and
Uninsured – Discussion
▪ Feasibility Study Topic and Area of
Interest – Assignment
▪ Demand Theory and Its Application
– Discussion
▪ Appreciating Supply and Demand
Analysis – Discussion
▪ Concept Paper Submission –
Assignment
▪ Opportunism in Health Care –
Discussion
2. Analyze economic theories that are
germane to the provision of health
services.
1
1
4
▪ Value and Consumer Preference –
Discussion
▪ The Importance of Economics for
Health Care Leaders – Discussion
▪ Economic Analyses and
Interventions – Discussion
3. Analyze the role of public policy and the
economics of health services.
1
▪ The Importance of Economics for
Health Care Leaders – Discussion
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MHA618: HEALTH ECONOMICS COURSE GUIDE
2
2
3
4
4
5
6
▪ Finance, Risk, and Cost –
Discussion
▪ Overinsured, Underinsured, and
Uninsured – Discussion
▪ Demand Theory and Its Application
– Discussion
▪ Pricing and Transparency –
Discussion
▪ Concept Paper Submission –
Assignment
▪ Inseparability of Markets and
Regulations – Discussion
▪ Consumer Incentives – Discussion
4. Develop microeconomic models that are
responsive to specific health care
service demands.
3
4
4
5
6
6
▪ Demand Theory and Its Application
– Discussion
▪ Economic Analyses and
Interventions – Discussion
▪ Concept Paper Submission –
Assignment
▪ Applying Game Theory to Strategy –
Discussion
▪ Opportunism in Healthcare –
Discussion
▪ Final Paper
5. Compare and contrast economic
challenges and incentives among health
care’s organizational models.
1
2
4
5
▪ Value and Consumer Preference –
Discussion
▪ Finance, Risk, and Cost –
Discussion
▪ Economic Analyses and
Interventions – Discussion
▪ Inseparability of Markets and
Regulations – Discussion
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MHA618: HEALTH ECONOMICS COURSE GUIDE
6
6
▪ Consumer Incentives – Discussion
▪ Final Paper
6. Evaluate the social-cultural issues
influencing health economics.
2
2
3
4
4
5
5
6
6
6
▪ Finance, Risk, and Cost –
Discussion
▪ Overinsured, Underinsured, and
Uninsured – Discussion
▪ Appreciating Supply and Demand
Analysis – Discussion
▪ Pricing and Transparency –
Discussion
▪ Concept Paper Submission –
Assignment
▪ Inseparability of Markets and
Regulations – Discussion
▪ Applying Game Theory to Strategy –
Discussion
▪ Consumer Incentives – Discussion
▪ Opportunism in Health Care –
Discussion
▪ Final Paper
7. Design an economical health care
service that is responsive to a given
market.
2
6
▪ Finance, Risk, and Cost –
Discussion
▪ Final Paper
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MHA618: HEALTH ECONOMICS COURSE GUIDE
MHA618 ALIGNMENT MAP
The alignment map illustrates the careful design of the course through the alignment of course learning
outcomes with both program learning outcomes and professional standards, to ensure integrity and
pedagogical depth in the learning experience.
Course Learning Outcome Program Learning Outcome Professional Standards
(ACHE & NCHL)
PLO 1. Communicate the
relevance of economics to
the U.S. health care system.
PLO9 Professional Knowledge
Communicate
The responsibility of a health
care professional remaining
current in their professional
knowledge.
ACHE1: Communication and
Relationship Management: The ability
to communicate clearly and concisely
with internal and external customers,
establishes and maintains
relationships, and facilitates
constructive interactions with
individuals and groups.
ACHE5. Business Skills and
Knowledge: The ability to apply
business principles, including systems
thinking, to the healthcare environment.
PLO 2. Analyze economic
theories that are germane to
the provision of health
services.
PLO7: Economic Perspectives
of Health Policies
Apply health care economic
perspectives in the
interpretation of health policy.
ACHE5. Business Skills and
Knowledge: The ability to apply
business principles, including systems
thinking, to the healthcare environment.
PLO 3. Analyze the role of
public policy and the
economics of health
services.
PLO7: Economic Perspectives
of Health Policies
Apply health care economic
perspectives in the
interpretation of health policy.
ACHE3: Professionalism: The ability
to align personal and organizational
conduct with ethical and professional
standards that include a responsibility
to the patient and community, a service
orientation, and a commitment to
lifelong learning and improvement.
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MHA618: HEALTH ECONOMICS COURSE GUIDE
Course Learning Outcome Program Learning Outcome Professional Standards
(ACHE & NCHL)
PLO 4. Develop
microeconomic models that
are responsive to specific
health care service
demands.
PLO8 Health Care Issues Apply
problem-
Solving approaches in the
resolution of health care issues.
ACHE5. Business Skills and
Knowledge: The ability to apply
business principles, including systems
thinking, to the healthcare environment.
PLO 5. Compare and
contrast economic
challenges and incentives
among health care’s
organizational models
PLO7: Economic Perspectives
of Health Policies
Apply health care economic
perspectives in the
interpretation of health policy.
ACHE5. Business Skills and
Knowledge: The ability to apply
business principles, including systems
thinking, to the healthcare environment.
PLO 6. Evaluate the social-
cultural issues influencing
health economics.
PLO5 Diversity Demonstrate
sensitivity to diversity in the
health care setting.
ACHE2: Leadership
The ability to inspire individual and
organizational excellence, create a
shared vision and successfully manage
change to attain the organization’s
strategic ends and successful
performance.
ACHE4: Knowledge of the
Healthcare Environment
The understanding of the healthcare
system and the environment in which
healthcare managers and providers
function.
ACHE5: Business Skills and
Knowledge: The ability to apply
business principles, including systems
thinking, to the healthcare environment.
PLO 7. Design an
economical health care
PLO1: Apply health care
financial and accounting
ACHE5. Business Skills and
Knowledge: The ability to apply
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MHA618: HEALTH ECONOMICS COURSE GUIDE
Course Learning Outcome Program Learning Outcome Professional Standards
(ACHE & NCHL)
service that is responsive to
a given market.
concepts in organizational
decision making.
business principles, including systems
thinking, to the healthcare environment.
