Health Economics and Financing

499 Pages·2012·2.99 MB·English

by  Thomas E. Getzen

FIFTH EDITION
HealtH
economics
and
Financing
tHomas e. getzen
This page is intentionally left blank
HEALTH ECONOMICS
AND FINANCING
This page is intentionally left blank
HEALTH ECONOMICS
AND FINANCING
Fifth Edition
Thomas E. Getzen
Temple University and iHEA
VP & Executive Publisher George Hoffman
Executive Editor Joel Hollenbeck
Content Editor Jennifer Manias
Assistant Editor Courtney Luzzi
Senior Editorial Assistant Erica Horowitz
Associate Director of Marketing Amy Scholz
Senior Marketing Manager Jesse Cruz
Marketing Assistant Justine Kay
Product Designer Greg Chaput
Media Specialist Daniela DiMaggio
Senior Production Manager Janis Soo
Associate Production Manager Joel Balbin
Production Editor Yee Lyn Song
Designer Kenji Ngieng
Cover Photo (cid:2)c Pawel Gaul/istockphoto
This book was set in Minion by Aptara, Inc. and printed and bound by Courier Kendallville.
The cover was printed by Courier Kendallville.
This book is printed on acid-free paper.∞
Founded in 1807, John Wiley & Sons, Inc. has been a valued source of knowledge and understanding for more than
200 years, helping people around the world meet their needs and fulfill their aspirations. Our company is built on a
foundation of principles that include responsibility to the communities we serve and where we live and work. In
2008, we launched a Corporate Citizenship Initiative, a global effort to address the environmental, social, economic,
and ethical challenges we face in our business. Among the issues we are addressing are carbon impact, paper
specifications and procurement, ethical conduct within our business and among our vendors, and community and
charitable support. For more information, please visit our website: www.wiley.com/go/citizenship.
Copyright(cid:2)c 2013, 2010, 2007, 2004 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United
States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment
of the appropriate per-copy fee to the Copyright Clearance Center, Inc. 222 Rosewood Drive, Danvers, MA 01923,
website www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions
Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, [phone], fax [phone],
website http://www.wiley.com/go/permissions.
Evaluation copies are provided to qualified academics and professionals for review purposes only, for use in their
courses during the next academic year. These copies are licensed and may not be sold or transferred to a third party.
Upon completion of the review period, please return the evaluation copy to Wiley. Return instructions and a free of
charge return mailing label are available at www.wiley.com/go/returnlabel. If you have chosen to adopt this textbook
for use in your course, please accept this book as your complimentary desk copy. Outside of the United States, please
contact your local sales representative.
Library of Congress Cataloging-in-Publication Data
Getzen, Thomas E.
Health economics and financing / Thomas E. Getzen.—5th ed.
p. ; cm.
Includes bibliographical references and index.
ISBN 978-1-118-18490-5 (cloth : alk. paper)
I. Title.
[DNLM: 1. Economics, Medical—United States. 2. Delivery of Health Care—economics—United
States. 3. Health Care Reform—economics—United States. W 74 AA1] 2013
338.4(cid:3)33621–dc23
2012028595
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
—to Karen, Matt, Zoa, and Kayla
This page is intentionally left blank
BRIEF CONTENTS
Preface xxiii
Acknowledgments xxv
About the Author xxvi
Foreword xxvii
1
Choices: Money, Medicine, and Health 1
2
Demand and Supply 23
3
Cost–Benefit and Cost-Effectiveness Analysis 44
4
Health Insurance: Financing Medical Care 69
5
Insurance Contracts and Managed Care 96
6
Physicians 124
7
Medical Education, Organization, and Business Practices 146
8
Hospitals 172
9
Management and Regulation of Hospital Costs 191
10
Long-Term Care 212
11
Pharmaceuticals 236
12
Financing and Ownership of Health Care Providers 259
13
Macroeconomics of Medical Care 292
14
The Role of Government and Public Goods 319
15
History, Demography, and the Growth of Modern Medicine 347
16
International Comparisons of Health and Health
Expenditures 372
17
Economic Evaluation of Health Policy: The Patient Protection
and Affordable Care Act of 2010 408
18
Value for Money in the Future of Health Care 427
Glossary 443
Index 453
vii
This page is intentionally left blank