health

Name the fundamental premise of the course

Understanding healthcare issues through an economic lens

What is the core principle of the course fundamentals

Identification of scarcity as a major cause of todays healthcare problems

Define Scarcity

deficiency in the quantity and/or quality of available goods and services compared with the amounts that people desire

What problem does the U.S healthcare system create

The u.s healthcare paradox

How many points are in the “not enough problem”

3 -

The "not enough" problem:

  · Approximately 50 million people lack health insurance coverage in the United States

  · Many uninsured individuals have difficulty obtaining adequate care, especially primary care

  · The uninsured population serves as a "bellwether" (leading indicator) of access problems in the U.S. healthcare system

List 2 points of the not enough problem

1. Approximately 50 million people lack health insurance coverage

2. Many uninsured individuals have difficulty obtaining adequate care, especially primary care

List another 2 points of the healthcare not enough problem (2) hint: define bellweather

1. The uninsured population serves as a bellweather (leading indicator) of access problems in the u.s healthcare system

Define bellweather

Leading indicator

How many points are in the too much problem

4 -

The "too much" problem:

  · 2010 total healthcare expenditures: Over $2.6 trillion

  · 7.5% of Gross National Product (GNP) - the dollar sum of all final goods and services produced

  · Comparison: In 1965, healthcare expenditures were only 5.6% of GNP

  · This represents a significant increase in healthcare's share of the economy

List 2 point sin the too much problem

2010 healthcare expedentirues reached over 2.6 trillion

7.5% of gross national product

What does gross national product GNP stand for

The dollar sum of all final goods and services produced

Compare the current GNP to that og 1965

Current: 7.5 v 5.6 in 1965

Examples of Potentially Unnecessary/Questionable Services

1. "Little ticket" items:

   · Large-volume services with questioned impact on health

   · Examples: Radiographs (X-rays) and lab tests

   · Account for approximately one-quarter of all hospital costs (Angell, 1985)

2. High-cost procedures:

   · Coronary artery bypass grafting

   · Transplants

   · Costly intensive care services

   · New drugs with often undocumented effectiveness

3. Terminal care services:

   · Hospital services for the terminally ill

   · Consume a disproportionate share of the healthcare dollar (Zook and Moore, 1980; Long, et al., 1984)

D. The "Flat of the Curve" Medicine Concept

Definition: Medical care that produces little or no improvement in health (Enthoven, 1980)

Name the significance of the flat of the curve medicine concept

Significance: Accusations of "too much" alongside cries of "not enough" highlight the importance of studying the entire resource allocation process in healthcare

II. THE ROLE OF ECONOMICS IN HEALTHCARE

A. Definition of Economics

The science that deals with:

  · Making choices

  · Consequences of resource scarcity

B. Health Economics Defined

Addresses the consequences of resource scarcity specifically in the healthcare industry