The Economics of Health Care Delivery

Overview

In this course, you’ll learn about the key components of health care, and the economics behind their principles and pricing strategies. Professors Ezekiel Emanuel of Penn Medicine and Guy David of the Wharton School have designed this course to help you understand the complex structure of the health care system and health insurance. Through study and analysis of providers and insurance through an economic lens, you’ll learn how basic economic principles apply to both principles and payment methods. By the end of this course, you’ll be able to identify different types of health care providers and understand the dynamic between the providers and patient so you can employ best practices and maximize profit for your health care organization.

Syllabus

Module 1

Important Program Note:
A revised course version is set to launch on or near July 1, 2025. If you are a student with late work, deadlines will be reset and the content will be updated.

This module is designed to give you an understanding of the history and structure of the American health care system. Dr. Emanuel begins with an overview of ambulatory care providers, the history of health care reform in the United States, an examination of Medicaid and other government insurance programs, and an introduction to private health insurance. Prof. David explores the concept of the iron triangle of health care—quality, cost, and access—and the focus areas for health care policy.

Module 2

This module introduces the economics of insurance, as well as its structure and key components. Prof. David will also examine the concepts of risk aversion and moral hazard, and the challenges of cost sharing and adverse selection.

Module 3

In this module, Prof. David surveys the economics of health care from the physician and hospital perspectives, including the impact of incentives, supplier-induced demand, cost-shifting, and cross-subsidization. Dr. Emanuel explains provider payments to hospitals and doctors, and he examines collaborative care models offering behavioral health.

Module 4

In this module, Prof. David surveys the economics of post-acute and hospice care and the shift toward care outside the hospital. He explains the relevance of vertical and horizontal integration, price discrimination, and price fixing to health systems. And he examines certificate of need and antitrust regulations, as well as the process for determining whether mergers violate antitrust laws. By the end of this module, you will have a deeper understanding of the health care ecosystem, and how various providers of health care affect each other within that system.