Health Economics in Healthcare

Healthcare costs for Americans continue to rise, and many healthcare services are viewed as out of reach to people who can't afford out-of-pocket costs and don't have health insurance.

Health economics is a growing field of economic theory that evaluates the disparities in healthcare while brainstorming on ways to make medical care more affordable for all.

What Is Health Economics?

Health economics is a system of economic evaluation around the spending and costs associated with healthcare. This economic analysis looks at the healthcare industry as a whole to evaluate how costs are set by healthcare providers as well as how they are impacted by governmental policymakers and insurance companies. Lastly, health economists look at the socioeconomic distribution of healthcare to see if there are unequal treatment methods based on the various determinants of health.

Health economists work in a variety of positions. Some work with governmental and non-government agencies, but others work in the private sector for universities and healthcare organizations like hospitals to try to maximize efficiency.

Examples of Health Economics

Health economics is a broad field that includes analyzing multiple facets of the healthcare industry and how it is affected by external factors. Examples of health economics include:

• looking at healthcare spending from region to region
• performing cost-benefit analysis of different healthcare methodologies
• reviewing scarce resource allocation
• analyzing healthcare policy
• reviewing the usage of health technology

Why Health Economics Matters in Healthcare

The pandemic highlighted the importance of population health and how different factors impact the health status of different demographics.

Health economics can be used by decision-makers both in the public and private sectors to perform cost-effectiveness analyses of current health systems. Healthcare delivery is supposed to be focused solely on the well-being of patients and their health outcomes, but many factors make implementing healthcare more focused on money.

The healthcare sector is heavily dependent on insurance to influence financial decision-making. Many people rely on the health benefits offered by their employers to pay for healthcare, which creates inequality within medical care for the unemployed and underemployed.

How Health Economics Impacts Public Health

Health professionals often don't have the time to analyze the sustainability of their current methods. Health economists can look at metrics that healthcare management can't and make recommendations to make care more affordable for all.

Making hospitals and other healthcare organizations as effective as possible can keep costs down and help make sure that limited resources, including time, are allocated equitably. Healthcare expenditures continue to rise, and American patients are constantly spending more on both physical and mental health treatments.

How Health Economics Influences Health Policy and Health Care System Improvements

Health economics analyzes how public policy affects healthcare financing. Working with government agencies like the World Health Organization (WHO) to craft initiatives to help people of all socioeconomic classes.

Healthcare markets in America are influenced not only by public policy but also by insurance companies. Health economics serves as a branch between the private sector and public agencies to see the connections between the actions of governments and insurance companies.

Studying Health Economics

Healthcare economics programs are offered at multiple colleges, but the overall degree program will be similar, regardless of school.

Topics and courses that you can expect in a healthcare economics degree program include:

• statistics and data analysis
• economic (macro and micro) evaluation
• environmental health
• health status and patient outcomes
• detailed analysis of the American Healthcare System
• health insurance and reimbursement
• supply chain management

Earning a degree in health economics is often a master's degree program, although some students pursue doctoral-level degrees in the subject. Once a student graduates with a degree in health economics, they will be prepared for a few careers like:

• health economist
• healthcare analyst
• senior consultant
• data analyst
• research associate
• research fellow

Health Economics Degree Programs

If you're looking to pursue a degree in health economics, several schools offer the degree. However, some schools call it patient outcomes research or health policy and economics. These degrees might have different names, but they are essentially the same at their core.

John Hopkins University

One of the most respected medical schools in the country, John Hopkins University offered a master's degree program in health economics. John Hopkins is located in Baltimore, MD, which also provides proximity to Washington, D.C., and policymakers.

University of Colorado, Denver

The University of Colorado at Denver offers a Master of Science in health economics, but they also have a doctoral-level degree program and a clear educational path from the master's-level degree. UCD's classes are separated between their main campus and their medical campus to provide theoretical and practical experience to their students.

Thomas Jefferson University

At Thomas Jefferson University the degree is called Master of Science in applied health economics and outcomes research. This degree program has two unique education tracks: industry and research. The industry track focuses on how policymakers, insurance companies, and patients impact the costs of health care while the research track includes more of a statistical and analytical approach.

University of Washington

The University of Washington offers a certificate in health economics and outcomes research in place of a degree program. This program is designed for people who already have a degree in healthcare or a related medical technology industry and are looking to expand their skills and understanding of the larger economic picture around healthcare.

Texas Tech University

The Master of Science in healthcare finance and economics offered at Texas Tech is an online, accelerated graduate program designed to help working professionals develop their skills and position themselves for career advancement and promotions.