In healthcare, there’s an emphasis on “care.” Yet, health insurance is an integral part of healthcare that also needs attention. As a result, the industry is experiencing increasing demand for professionals with top-level knowledge about health insurance and its intricacies.
Who can meet the demand? To start, a Master of Business Administration (MBA) degree with a concentration in Healthcare Economics and Management is a tremendous opportunity for those who want to impact financial decisions across several healthcare organizations.
Those who will realize the most success have experience in both finance and healthcare because they understand the need for quality care and its economic impact.
What Exactly Is Healthcare Economics?
There are a lot of moving pieces that factor into healthcare economics. Per Health Analytics, healthcare economics “addresses the intersection between economics and healthcare, illustrating the costs versus benefits of treatments.” Applications in healthcare economics include health policy evaluation, “cost-benefit analysis, cost-effectiveness analysis, cost-utility analysis, pharmacoeconomics and health technology assessment,” among other tools and techniques. Many factors shape healthcare economics, such as technological changes, patient treatment and medication choices, insurance and risk policies and impacts, variations in provider services and pricing, healthcare benefits packages and patient payment methods.
These examples contribute to current trends in costs associated with healthcare — and how those trends affect the role health insurance plays in the overall economy. For example, The Brookings Institution captures differences between the U.S. and other developed countries. Namely, the U.S. spends the most on healthcare among advanced economies worldwide.
Another insight is that the healthcare worker shortage (physicians, nurses, specialty services) is adding to rising healthcare costs. Data also indicates that healthcare expenditures are highest for those with the poorest health.
How does this all specifically affect individuals living in the U.S.? The Kaiser Family Foundation (KFF) reports that nearly “half of U.S. adults say they have difficulty affording health care costs,” which restricts access to routine or even critical care. In fact, “one-third of adults say they or a family member have skipped recommended medical treatment due to cost, while four in ten say they have delayed needed care,” according to a 2022 healthcare debt survey.
Addressing Rising Healthcare Costs
There are many benefits to addressing rising healthcare costs. Many have argued that universal healthcare coverage would damage the U.S. labor force. Others speak to an opposite result — that a universal approach to healthcare would:
- Boost wages
- Improve job quality
- Support small business development and solopreneurship
- Reduce the stress of losing insurance due to job loss or change
EPI author Josh Bivens also notes that such an approach would “inject new dynamism and adaptability into the overall economy by reducing ‘job lock’—with workers going where their skills and preferences best fit the job, not just to workplaces (usually large ones) that have affordable health plans.”
In Bivens’ mind, it’s a win-win-win for patients, providers and policymakers. Yet, it’s essential for professionals working in healthcare to have a good understanding of the entire
Uplevel Your Healthcare Economy Knowledge With an MBA
If you’re seeking a career in healthcare administration, management or entrepreneurship, the MBA with a concentration in Healthcare Economics and Management online program at William Paterson University (WP) is a great place to start. This program prepares students to be knowledgeable about various economic and financial aspects of the healthcare industry.
In particular, the Health Economics & Policy course provides an inside look at economic models that explain the behavior of patients, physicians and other stakeholders. This course also introduces the quantitative techniques for evaluating how local, state and federal government health laws and interventions influence health outcomes.
Financial literacy is essential for anyone working in the healthcare field, particularly those in business-related roles. You can earn a leg up on your competition by pursuing your education with this degree.
Learn more about William Paterson University’s online MBA with a concentration in Healthcare Economics and Management program.
