M1: Is healthcare really different?

3 important questions on M1: Is healthcare really different?

Difference between economic sustainability & financial sustainability

Economic: Ensuring value for money (HE)
Financial: How to pay for spending growth?

Non-market institutions in healthcare:

  • Professional licensure
  • Not-for-profit organizations
  • Restrictions on provider advertising
  • “Any-willing-provider” laws
  • Social health insurance
  • Supply regulation (e.g. of entry and capacity)
  • Price regulation
  • Quality regulation
  • Public provision of health care (e.g. NHS)

Why health economics?

Health economics provides concepts and tools to understand the difficult trade-offs involved in organizing the allocation of scarce resources in the healthcare sector, which may help to improve health policy and health system design.

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