Course

Unit 1

DEMAND FOR HEALTH AND HEALTH CARE and SUPPLY OF HEALTH CARE, The GrossmanModel, Socioeconomic Disparities in Health, The Labor Market for Physicians, Hospitals

Unit 2

Health Technology Assessment- Incremental Cost effectiveness ratio, Cost-benefit analysis, Cost-Utility Analysis, Cost of Illness studies, Ethical Considerations

Unit 3

Information Economics– Demand for Insurance, Moral Hazard, Akerlof’s Market for Lemons, The Rothschild-Stiglitz Model, Adverse Selection in Real Markets

Unit 4

Health Policy Globally -Beveridge Model, Bismarck Model, American Model, Indian Healthcare system

Unit 5

Behavioural Health Economics – Prospect Theory, Time inconsistency and Health, Public Health Economics- Health Externalities, Economic Epidemiology

Text Books / References

1. Bhattacharya, J., Hyde, T., & Tu, P. (2014). Health economics. Bloomsbury Publishing.
2. Sloan, F. A., & Hsieh, C. R. (2017). Health economics. Mit Press.
3. https://www.nlm.nih.gov/nichsr/hta101/ta10103.html
4. Kadri, A. M. (2019). IAPSM’s Textbook of Community Medicine. Jaypee Brothers Medical Publishers.

Prerequisite: 24SDS551 Health Policy & Systems Research Summary: This course provides an overview of health economics, exploring the economic behavior of individuals and institutions within the healthcare system. Students will learn about the principles of supply and demand, cost- benefit analysis, and the financial incentives that drive healthcare decision-making. The course aims to equip students with the tools to analyze healthcare policies, understand the economic impacts of health interventions, and address issues such as healthcare financing, insurance, and the allocation of resources in both public and private sectors

Course Objectives:

1. Analyze Health Care Demand and Supply: Demonstrate a thorough understanding of the Grossman model and its implications for health care demand. Analyze the factors influencing the supply of health care, including the labor market for physicians and the role of hospitals. Evaluate the causes and consequences of socioeconomic disparities in health.
2. Apply Health Technology Assessment Techniques: Develop proficiency in conducting and interpreting various health economic evaluation methods, including cost-effectiveness analysis, cost-benefit analysis, and cost-utility analysis. Calculate and interpret the Incremental Cost-Effectiveness Ratio (ICER). Critically assess the ethical considerations in health technology assessment and resource allocation decisions.
3. Evaluate Information Economics in Healthcare: Analyze the economics of health insurance, including the demand for insurance and the concepts of moral hazard and adverse selection. Apply theoretical models such as Akerlof’s Market for Lemons and the Rothschild-Stiglitz Model to real-world health insurance markets. Evaluate the implications of information asymmetry in healthcare.
4. Compare and Contrast Global Health Systems: Demonstrate a comprehensive understanding of major global health care models, including the Beveridge Model, Bismarck Model, and American Model. Analyze the structure, financing, and performance of the Indian healthcare system. Evaluate the strengths and weaknesses of different health care systems in addressing population health needs and economic efficiency.
5. Apply Behavioral Economics to Health: Understand and apply concepts from behavioral economics, particularly Prospect Theory, to health-related decision-making. Analyze time inconsistency in health behaviors and its implications for health policy. Evaluate the effectiveness of behavioral economic interventions in improving health outcomes.
6. Assess Public Health Economics and Economic Epidemiology: Analyze health externalities and their impact on public health policy. Demonstrate understanding of economic epidemiology and its applications in predicting and controlling disease spread. Evaluate the economic rationale for public health interventions and their potential impact on population health and healthcare costs.

Course Outcomes:

CO1: Students can analyze the determinants of health care demand and supply using economic frameworks, including the Grossman model, and evaluate labor market dynamics in the health sector.

CO2: Students can apply economic evaluation tools such as cost-effectiveness analysis and incremental cost-effectiveness ratio (ICER) to assess health technologies, while critically examining the ethical implications of resource allocation decisions.

CO3: Students can examine the role of information asymmetry in health insurance markets through theoretical models (e.g., Akerlof, Rothschild-Stiglitz) and assess how adverse selection and moral

hazard impact health outcomes.

CO4: Students can compare the institutional structures, financing mechanisms, and outcomes of diverse global health care systems, including India, and evaluate their implications for equity and efficiency in population health.

CO5: Students can utilize concepts from behavioral economics (e.g., time inconsistency, Prospect Theory) to interpret health-related decision-making and propose interventions aimed at improving health behaviors and policy outcomes

Skills:

• Apply economic reasoning to assess health care demand, supply, insurance behavior, and disparities using foundational and advanced models.

• Conduct and interpret health economic evaluations, including cost-effectiveness and cost-utility analyses, to inform policy and resource allocation.

• Analyze global health systems and public health interventions through the lens of equity, efficiency, and ethical decision-making.

• Integrate insights from behavioral economics and information economics to design evidence-based, context- sensitive health policies and interventions.

-Program outcome PO – Course Outcomes CO Mapping

Program Specific Outcomes PSO – Course Objectives – Mapping

*CA – Can be Quizzes, Assignment, Projects, and Reports, and Seminar