The health care system involves the interaction of three main types of agents:
- Health insurers/managed care organizations (public & private)
- Providers of medical goods and services, including
- Pharmaceutical & medical device companies
We will provide a framework for understanding the economic factors underlying the health care system and the interaction of its agents. For several reasons, standard economic models are not adequate to understand markets for health care. For example, it is difficult for the consumer/ patient to evaluate the quality of the services received. Costs are uncertain, and insurance reduces the incentive of the consumer/patient or physician to seek the most economical means of treatment.
We will focus primarily on the structure and economics of health insurance and the demand for health care, pricing of drugs and hospital services, cost-benefit analyses employed by payers and consumers of health care products and services, mechanisms used for paying physicians and its impact on the provision of care, and the role of information in the selection and provision of medical goods and services.
Adjunct Professor of Business
Professor Cramer spent more than 25 years in the healthcare, pharmaceutical, and financial services sectors. He was Managing Director at Merrill Lynch in the Global Healthcare Investment Banking Group, and Managing Director at JPMorgan in the Corporate Finance Group providing M&A services and financing to global healthcare enterprises. Earlier, Prof. Cramer was Vice President, Corporate Planning & Development for Merck & Co., Inc...
Executive in Residence
Robert Essner is the retired chairman and CEO of Wyeth, which was one of the world's leading research-based pharmaceutical companies. He led the transformation of Wyeth into a science-based industry leader with strong positions in drugs, biotechnology, vaccines, nonprescription products and animal health. During his more than 30 years in the industry, Mr. Essner served as chairman of both U.S. and global pharmaceutical...
Courtney C. Brown Professor of Business
Frank R. Lichtenberg is Courtney C. Brown Professor of Business at the Columbia University Graduate School of Business; a Research Associate of the National Bureau of Economic Research; and a member of the CESifo Research Network. He received a BA with Honors in History from the University of Chicago and an MA and PhD in Economics from the University of Pennsylvania.