Topics
          1. Introduction to Healthcare Economics
          2. Characteristics of Healthcare Markets
          3. Production of Health
          4. Health Production Function
          5. Impacts of a Pandemic on Healthcare Systems
          6. Universal Coverage
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             Learning Objectives
             After reading this chapter, you will be able to:
              LO1 Explain the challenges of providing healthcare during a pandemic. 
              LO2 Discuss the unique characteristics of healthcare markets. 
              LO3 Analyze the production of health, including population health and health inputs. 
              LO4 Examine the shape and components of health production functions, the marginal 
             production of health, and rotations.   
              LO5 Address the impacts of a pandemic on healthcare systems, including shortages of         medical 
             equipment and the economic viability of hospitals. 
              LO6 Consider the importance of universal healthcare coverage during a pandemic.  
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                                1.            • A pandemic alters the processes and 
          Introducti                          systems that constitute healthcare systems. 
                                              •
                                                Healthcare systems that are self-sustaining 
                       on to                  are susceptible to turbulence with an 
          Healthcar                           external shock as large as a pandemic.  
                                              •
                                 e              This chapter addresses the impact of a 
                                              pandemic on healthcare, the management, 
           Economic                           prevention, and treatment of illnesses and 
                                              the promotion of mental and physical well-
                                  s           being.
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           Challenges
          •
            Early in the coronavirus pandemic, for example, health departments 
           were hampered by a shortage of testing capacity.  
          •
            This problem left them without the information necessary to track 
           and contain the disease.  
          •
            While some countries strengthened testing capacity, many struggled 
           with detection and the procurement of testing equipment. 
          •
            This chapter uses the tools of economics to address the impact of a 
           pandemic on public health and population health. 
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            PUBLIC HEALTH                                      POPULATION HEALTH
           • Public health includes disease                   • Population health refers to a country’s 
            prevention, the extension of life, and             health status.  
            the promotion of health through                   •
            informed choices.                                   It is a function of health inputs or 
                                                               determinants, including public health, 
           • The objective of public health is to              climate factors, education, 
            identify and establish the conditions              environmental quality, income, the 
            for healthy lives.                                 distribution of outcomes, and health 
                                                               policies.   
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