The Economics of Health Reconsidered

by Rice, Thomas H.

• ISBN13: 9781567931938
• ISBN10: 1567931936
• Edition: 2nd
• Format: Hardcover
• Copyright: 2002-11-01
• Publisher: Health Administration Pr

Table of Contents

Foreword	xi
Uwe E. Reinhardt
Acknowledgments	xxiii
Preface to the Second Edition	xxv
Introduction	1	(8)
Why Should the Economics of Health Be Reconsidered?
Purpose of the Book
Outline of the Book
Market Competition	9	(58)
The Traditional Economic Model
Consumers
Producers
The Economy as a Whole
Pareto Optimality and Social Welfare
Problems with the Traditional Model
Negative Externality: Concern About Status
Positive Externality: Concern About Others
Consumer Tastes Are Predetermined
Implications for Health Policy
Does the Distribution of Income Affect the Health of the Population?
Equalizing Access to Health Services
What Comes First: Allocation or Distribution?
Competition and Prevention
Government-Sponsored Health Education
Should Cost Control Be a Public Policy?
Demand Theory	67	(62)
The Traditional Economic Model
Utility and Social Welfare
Revealed Preference
Demand Curves and Functions
The Meaning of Demand and Consumer Surplus
Problems with the Traditional Model
Social Welfare and Consumer Choice: A Syllogism
Are Individual Utilities Maximized When People Are Allowed to Choose?
Is Social Welfare Maximized When Individual Utilities Are Maximized?
Implications for Health Policy
Is Comprehensive National Health Insurance Necessarily Inefficient?
Should Patient Cost-Sharing Be Encouraged, or Should We Use Other Policies?
Should People Pay More for Price-Elastic Services?
Defined Contribution, Premium Support, and msas
Supply Theory	129	(42)
The Traditional Economic Model
Problems with the Traditional Model
Are Supply and Demand Independently Determined?
Do Firms Have Monopoly Power?
Do Firms Maximize Profits?
Do Increasing Returns to Scale Exist?
Is Production Independent of the Distribution of Wealth?
Implications for Health Policy
Capitation and Incentive Reimbursement
Issues Surrounding Patient Cost-Sharing
Allowing Only Selected Hospitals to Provide Particular Services
Improving Productivity by Providing Insurance
Equity and Redistribution	171	(30)
The Traditional Economic Model
Problems with the Traditional Model
Overview of Utilitarianism
Problems with Ordinal Utilitarianism
Implications for Health Policy
Providing Health Services Rather than Cash
Focusing on People's Health, Not Utility
National Health Insurance
The Role of Government	201	(70)
Alternative Views on the Role of Government
Market Failure
Government Failure
Different Approaches to the Role of Government in the Health Services Sector
Structure of the System
Nature of Coverage and Delivery
Regulation of Prices and Expenditures
Regulation of Volume
Control of Input Supply
Cross-National Data on Health System Performance
Access
Utilization
Expenditures
Quality and Satisfaction
Equity of Financing System
Summary of Evidence
Ten ``Lessons'' on the Role of Government in Health Systems
Conclusion	271	(4)
Appendix: Overview of the Health Services Systems in Ten Developed Countries	275	(31)
Miriam J. Laugesen
Thomas Rice
References	306	(29)
Index	335	(7)
About the Author	342