Part I
BASIC HEALTH CARE ECONOMIC TOOLS AND INSTITUTIONS
Chapter One – Introduction
For those new to the field of health economics, AcademyHealth ( provides a comprehensive glossary of terms that nicely complements the one provided in the text.
To keep abreast of current events related to health economics, consult various news sources such as:
ABC News (
CBS News (
CNN News (
MSNBC News (
In addition, the health sections of several newspapers are provided free of charge on the Web such as:
Los Angeles Times (
The New York Times (
The Washington Post (
To learn more about trade-offs, suppose you wanted to increase federal spending on medical care by 10 percent but wanted to keep the national budget at the same level. Use the National Budget Simulation (long or short version) ( to figure out the specific expenditure items that you would cut to keep the budget balanced.
If you wish to learn more about the field of health economics, consult the Web sites of theInternational Health Economics Association (iHEA)( the American Society of Health Economists(ASHE)( the National Information Center on Health Services Research and Health Care Technology(NICHSR)( to take a self-paced course in health economics.
Part I
BASIC HEALTH CARE ECONOMIC TOOLS AND INSTITUTIONS
Chapter Two – Health and Medical Care: An Economic Perspective
You can validate the importance of the health production function by visiting the Web site for RealAge ( to determine your “real” age based on your profile and lifestyle factors such as exercise, diet, and other factors.
Data for a variety of health indicators can be obtained from the National Center for Health Statistics (NCHS)( Also found on the site isHealth, United States ( an annual publication that contains a wide variety of data on health trends in the United States.
Updated figures for health care spending and the uses and sources of health care funds can be found at the Centers for Medicare Medicaid Services (CMS) ( To get some sense of macroeconomic conditions in the nation, visit the Bureau of Economics Analysis (BEA) ( or the Bureau of Labor Statistics (BLS) ( Additional information can be found at the Economics Statistics Briefing Room on the White House’s Web site (
Time series data on a variety of indicators including population growth, real income, availability of medical services (number of doctors or hospital beds), and utilization of health care (physician visits, hospital inpatient days) can be found at the U.S. Census Bureau (
Learn about the importance of socioeconomic status, lifestyle, and environmental factors on health status by visiting the following Web sites:
American Obesity Association (AOA) (
Environmental Protection Agency (EPA) (
Families USA (
Healthy Steps for Young Children Program (
KIDS COUNT (
Maternal ChildHealthPolicyResearchCenter (MCHPRC) (
The National Institute for Occupational Safety and Health (NIOSH)(http:/
Part I
BASIC HEALTH CARE ECONOMIC TOOLS AND INSTITUTIONS
Chapter Three – Cost and Benefit Analysis
To calculate the value of your life using the human capital approach, visit the human life value calculator developed by the Life and Health Insurance Foundation for Education (
A number of cost-benefit and cost-effectiveness studies can be found in the Journal of the American Medical Association (JAMA)( the New England Journal of Medicine (NEJM) ( and the American Journal of Public Health (
There are also a number of foundations and organizations that have sponsored research that utilize cost-benefit and cost-effectiveness analysis. Among those that you may want access include the Center for Studying Health System Change (HSC) ( the Center for Health Care Strategies (CHCS) ( the Institute for Health Policy Solutions (IHPS) ( the Maternal Child Health Policy Research Center (MCHPRC) ( and the UCLA Center for Health Policy Research (
The Cost Effectiveness Analysis (CEA) Registry sponsored by the Tufts-New England Medical Center Institute for Clinical Research and Health Policy Studies provides public electronic access to a comprehensive database of cost-effectiveness ratios in the published literature (
Part I
BASIC HEALTH CARE ECONOMIC TOOLS AND INSTITUTIONS
Chapter Four – Health Care Systems and Institutions
To gain further information and data on the U.S. health care system, consult the Centers for Medicare Medicaid Services (CMS) ( and the National Center for Health Statistics (NCHS)( Other government Web pages worth accessing are the Agency for Healthcare Research and Quality (AHRQ) ( the Centers for Disease Control and Prevention (CDC)( and the Department of Health Human Services (HHS)(
There are a number of sources that supply information regarding health care outcomes and systems around the globe. Any search should begin with a look at Portals to the World provided by the Library of Congress ( This Web site provides valuable information regarding public links and information for individual countries.Other Web sites to explore include the Organisation for Economic Co-operation and Development (OECD) ( the Pan American Health Organization ( the United Nations ( the World Bank Group ( and the World Health Organization (WHO) (
The European Observatory on Health Systems and Policies ( provides a comprehensive look at health care systems in Europe.
Part I
BASIC HEALTH CARE ECONOMIC TOOLS AND INSTITUTIONS
Chapter Five – The Demand for Medical Care
The most recent figures for out-of-pocket expenditures can be found at the Centers for Medicare Medicaid Services (CMS) ( When you get on the Web site, click on“Research, Statistics, Data, & Systems.”
This chapter points out that the Rand Institute was responsible for the health insurance studies in the 1970s which have provided us with most of our understanding of the impact health insurance has on consumer behavior. For other studies, consult the RAND Corporation’s Web site (
The Medical Expenditure Panel Survey (MEPS) ( is a set of large-scale surveys of families and individuals, their medical providers, and employers across the United States. The Web site lets you access the results of these surveys. Here you will find detailed information on health care utilization and expenditures, health insurance, and health status, as well as a variety of demographic, social, and economic characteristics of a representative sample of Americans.
To get a feel for the issues that concern consumers consult the Children’s Defense Fund ( Families USA ( or KIDS COUNT ( The voice for elderly health care consumers can be found at the American Association of Retired Persons (AARP) ( Other organizations worth consulting include the Alliance for Aging Research ( the Alliance for Retired Americans ( and the American Society on Aging (ASA)(
Part I
BASIC HEALTH CARE ECONOMIC TOOLS AND INSTITUTIONS
Chapter Six – The Demand for Medical Insurance: Traditional and Managed Care Coverage
For consumer information on health insurance plans, visit the U.S. Department of Labor’s (DOL) Web site (
There are a number of Web sites that have a glossary of managed care terms. For example, you can consult Preferred Partners ( or Pam Pohly’s Net Guide (
To gather insight about the private health insurance industry,visit America’s Health Insurance Plans (AHIP) ( This Web site provides a variety of information regarding health insurance that could prove useful. You may also want to visit the Web site of theIntegrated Healthcare Association (IHA) (
Data on managed care organizations can be obtained at Managed Care Digest (
Part I
BASIC HEALTH CARE ECONOMIC TOOLS AND INSTITUTIONS
Chapter Seven – Medical Care Production and Costs
Health care cost data can be obtained from the Centers for Medicare Medicaid Services (CMS) (
Labor costs are a critical factor in determining the total and marginal cost of producing health care. To gain an understanding of the number of individuals employed in the health care sector and the level of compensation they receive, visit the Bureau of Labor Statistics’ (BLS) Occupational Outlook Handbook (OOH)(
The text also discusses the impact of technology on the cost of producing medical care. You may want to visit the Medical Technology and Practice Patterns Institute ( for an appreciation of the impact of technology on medical care. This is a nonprofit organization that examines the social, economic, and clinical implications of newand emerging health care technologies.
We also mentioned that quality is one factor that shifts cost curves. Visit the Web site of theNational Committee for Quality Assurance (NCQA) ( for some information pertaining to quality in health care institutions.
To gain some insight on the operation and production of a for-profit hospital, visit TenetCare( TenetCare Healthcare Corporation owns or operates over 74 acute care hospitals and related businesses in 13 states. You may want to take the virtual tour provided on the Web site. Another firm of interest is the Hospital Corporation of America( It includes approximately 191 hospitals and 82 outpatient surgery centers in 23 states, England, and Switzerland.
Part I
BASIC HEALTH CARE ECONOMIC TOOLS AND INSTITUTIONS
Chapter Eight – Structure, Conduct, Performance, and Market Analysis
Any industry must first be identified before the nature of competition can be evaluated. The North American Industry Classification System (NAICS), which replaced the U.S. Standard Industrial Classification (SIC) system, can be found at the Web site of theU.S. Census Bureau (
Visit Advertising Age ( for information on advertising expenditures in different industries and the market shares of various firms in selected industries.While most of the data concern nonmedical firms and industries, there are some data for pharmaceutical companies and other types of for-profit medical organizations.
Studies concerning health policy and reform can be found at the Urban Institute (
Part 2
THE ROLE OF GOVERNMENT
Chapter Nine – Government, Health, and Medical Care
Federal, state, and local governments play a critical role in the medical sector.If you need to find a particular government agency, consult the U.S. government’s official Web portal,FIRSTGOV.gov ( The link for “Health and Nutrition” ( the site provides a wealth on information.
To gain an understanding of the government’s role in the financing of medical care,visit the Centers for Medicare Medicaid Services (CMS) (
You can find background information on antitrust from the Legal Information Institute (LII) sponsored by the CornellLawSchool ( Important information about antitrust policy toward the health care industry can be found at the Web site of theFederal Trade Commission (FTC) (
The Federation of Tax Administrators (FTA) ( publishes current state tax rates including taxes on cigarettes, beer, wine, and distilled spirits.
Major special interest groups pertaining to health care include the following:
AmericanHospital Association (AHA) (
American Medical Association (AMA) (
American Health Care Association (AHCA) (
America’s Health Insurance Plans (AHIP) (
Pharmaceutical Research and Manufacturers of America (PhRMA) (
Part 2
THE ROLE OF GOVERNMENT
Chapter Ten – Government as Health Insurer
Information on the government-financed health care expenditures can be obtained from the Centers for Medicare Medicaid Services (CMS) ( and the National Center for Health Statistics (NCHS)( At the Centers for Medicare Medicaid Services’ Web site, click on the “Medicare,” “Medicaid,” and “SCHIP” links for specific information regarding each. If you want a feel for the private health insurance plans offered under Medicare, consult the AetnaWeb page (
The Medicare Payment Advisory Commission (MedPAC) ( is also of interest because it is an independent federal organization that advises Congress on issues affecting the Medicare program. The Social Security Administration ( also provides information regarding the Medicare program. Click on the drop-down box by “Questions about:” and choose “Medicare” from the list of subjects.
Links to individual state government Web pages can be found at the Library of Congress (
Research on the Medicare and Medicaid programs has been funded by a number of organizations including the American Association of Retired Persons (AARP) ( TheHenry J. Kaiser Family Foundation (KFF) ( and TheCommonwealth Fund (
PART 3
INDUSTRY STUDIES
Chapter Eleven – The Private Health Insurance Industry
Visit America’s Health Insurance Plans (AHIP) ( to learn more about the private health insurance industry in the United States. The Web site provides a number of consumer guides ( that are helpful.
Other sites to review are the Association of Medical Insurance Intermediaries (AMII)( and Blue Cross Blue Shield Association (
To learn more about preferred provider organizations,visit the Web site of the American Association of Preferred Provider Organizations (AAPPO)(
The Web page of United HealthCare ( one of the largest MCOs in the United States, contains some interesting information concerning the market for private health insurance. Other sites of interest are Humana (Kaiser Permanente ( and Aetna (
The Council for Affordable Health Insurance (CAHI) ( is a research and advocacy association of insurance carriers that provides useful information regarding health insurance options for the private sector.
Part 3
INDUSTRY STUDIES
Chapter Twelve – The Physician Services Industry
Further information on the physician services industry and consumer health information can be found on the following Web pages:
American Academy of Family Physicians(AAFP) (
AmericanAcademy of Pediatrics (AAP)(
American Academy of Physician Assistants (AAPA)(
AmericanCollege of Obstetricians and Gynecologists (ACOG)(
AmericanCollege of Gastroenterology (ACG) (
American College of Surgeons (ACS)(
American Medical Association (AMA) (
Association of American Medical Colleges (AAMC) (
You can update the physician services price index at the Bureau of Labor Statistics (BLS) ( The most recent figures for physician expenditures can be found at the Web site of theCenters for Medicare Medicaid Services (CMS) (
Information about evidence-based clinical guidelines can be located at the Agency for Healthcare Research and Quality (AHRQ)(
PART 3
INDUSTRY STUDIES
Chapter Thirteen – The Hospital Services Industry
The American Hospital Association (AHA)( additional information on the hospital industry and an extensive list of other health care related sites. Also, the American Hospital Directory (AHD) ( provides data for over 6,000 hospitals.
You can update the hospital services price index at the Bureau of Labor Statistics (BLS)( The most recent figures for hospital service expenditures can be found at the Web site of theCenters for Medicare Medicaid Services (CMS) (
PART 3
INDUSTRY STUDIES
Chapter Fourteen – The Pharmaceutical Industry
The Pharmaceutical Research and Manufacturers of America (PhRMA) ( provides a considerable amount of data and information on the research activities of pharmaceutical companies.
Other Web pages of interest include the American Association of Colleges of Pharmacy (AACP)( Pharmacists Association (AphA)( and the American Institute of the History of Pharmacy (AIHP) (
You can update the pharmaceutical price index at the Bureau of Labor Statistics (BLS)( The most recent figures for pharmaceutical expenditures can be found at the Web site of theCenters for Medicare & Medicare Services (CMS) (
The U.S. Food and Drug Administration’s Web site ( is a good place to find news and information regarding the pharmaceutical industry.
For information on two of the larger drug companies,visit the Web pages ofPfizer Inc.( andMerck & Co, Inc. (
PART 3
INDUSTRY STUDIES
Chapter Fifteen – The Long-Term Care Industry
There are a number of interesting Web Sites that deal with long-term care. For a review of long-term care expenditures, consult the Centers for Medicare Medicaid Services (CMS) ( and the National Center for Health Statistics (NCHS)(
The Government Accountability Office (GAO) ( has conducted a number of studies concerned with issues of long-term care. Other government agencies of interest include the Administration on Aging (AoA) ( and the Social Security Administration (
There are a host of advocacy groups that provide valuable information. The most noteworthy is the American Association of Retired Persons (AARP) ( Other organizations worth consulting include the Alliance for Aging Research ( the Alliance for Retired Americans ( American Association of Homes and Services for the Aging (AAHSA)( the American Society on Aging (ASA)( the Hospice Foundation of America (HFA) ( the American Health Care Association (AHCA) ( and the National Council on the Aging (NCOA) ( The Web sites of the Acute Long Term Hospital Association (ALTHA) ( and the American Geriatrics Society (AGS)( also provides valuable information.