HEALTH CARE MANAGEMENT AND ECONOMICS

Course objectives

Knowledge and understanding The course deals with the decision making processes of firms, focusing in particular on the healthcare industry. Students are expected to learn the basic principles of: • microeconomic analysis of the firm, • the structure of firms and their internal organization in the healthcare industry, • economic evaluation of investment projects, • cost-effectiveness analysis and cost-utility analisys • the organization of national health system Applying knowledge and understanding Students will be able to apply basic methods and models of microeconomics, corporate finance, evaluation of health care programmes, in order to: • identify the determinants of firms’ strategic choices, focusing in particular on the firms operating in the healthcare industry, • evaluate the profitability of investment projects, • compare different healthcare projects. Making judgements Lectures, practical exercises and problem-solving sessions will provide students with the ability to assess the main strengths and weaknesses of theoretical models when used to identify firms’strategies and evaluate healthcare projects. Communication By the end of the course, students are able to discuss ideas, problems and solutions provided by microeconomics, corporate finance and evaluation techniques of healthcare programmes both with a specialized and a non-specialized audience. These capabilities are tested and evaluated in the final written exam and possibly in the oral exam. Lifelong learning skills Students are expected to develop those learning skills necessary to undertake additional studies on relevant topics in microeconomics, corporate finance and evaluation of health care programmes with a high degree of autonomy. During the course, students are encouraged to investigate further any topics of major interest, by consulting supplementary academic publications, specialized books, and internet sites. These capabilities are tested and evaluated in the final written exam and possibly in the oral exam, where students may have to discuss and solve some new problems based on the topics and material covered in class.

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ALBERTO NASTASI Lecturers' profile

Program - Frequency - Exams

Course program
BASIC CONCEPTS Objectives of economic analysis. Positive and normative analysis. Demand, supply, and market equilibrium. Elasticity. PRODUCTION, TECHNOLOGICAL CONSTRAINTS, AND COST ANALYSIS Inputs and outputs. Production set, production function, and isoquant. Examples of production technologies. Average and marginal productivity of a factor. Technical rate of substitution. Short run and long run. Returns to scale. Opportunity cost and production costs. Fixed, sunk, and variable costs. Total, average, and marginal cost functions. Cost minimization and optimal combination of inputs. Expansion path and long-run total cost function. Multi-product cost function. Economies of scale and economies of scope. MARKET STRUCTURES AND FIRM BEHAVIOR Perfect competition and the “price-taking” firm. Total, average, and marginal revenue. Profit maximization and the meaning of zero profit. Shutdown condition and the firm’s short-run supply curve. Short-run industry supply curve. Supply elasticity. Producer surplus. Long-run supply curves of the firm and the industry. Industry equilibrium. Pareto efficiency. Monopoly and monopolistic behavior. Deadweight loss of monopoly. Price discrimination. Natural monopoly and regulation. Oligopoly and strategic behavior. METHODS FOR THE ECONOMIC EVALUATION OF HEALTH PROGRAMS Phases of the investment decision-making process. Elements of financial mathematics: discounting and annuities. Opportunity cost of capital. Net Present Value (NPV) method. Cash flows for NPV calculation (differential cash flows net of tax effects). Equivalent annual cost. Other investment appraisal methods: Internal Rate of Return (IRR), payback period, discounted payback period. Decision trees and option value (expansion and abandonment options). Use of quality-of-life scales (QALYs) in economic evaluation. Cost-effectiveness analysis. Cost-utility analysis. Cost-benefit analysis. FINANCING AND THE INSTITUTIONAL AND ORGANIZATIONAL FRAMEWORK OF HEALTHCARE SYSTEMS Financing mechanisms: out-of-pocket payments; social insurance; tax-based financing; private (voluntary) insurance. Provider payment systems.
Prerequisites
A basic knowledge of mathematical analysis is required, particularly elements of algebra, functions, derivatives, and the fundamental concepts of optimization. These skills are necessary to understand and apply the analytical tools presented during the course.
Books
Besanko D.A., Braeutigam R.R., Microeconomia, McGraw-Hill, 2024. Drummond M.F., Sculpher M.J., Torrance G.W., O'Brien B.J., Stoddart G.L. (2010, terza edizione italiana), Metodi per la valutazione economica dei programmi sanitari, Il Pensiero Scientifico Editore (capp. 4, 5, 6, 7).
Frequency
Attendance is not mandatory but is encouraged.
Exam mode
The written exam consists of theoretical and descriptive questions on the topics covered during the course, together with exercises designed to assess students’ ability to apply quantitative analysis tools to microeconomic and healthcare management problems.
Lesson mode
Classes are conducted in person and primarily consist of lectures delivered by the instructor using multimedia tools. Student participation and interaction are encouraged throughout the course. Specific sessions are devoted to solving exercises aimed at preparing students for the final examination.
  • Lesson code1044424
  • Academic year2025/2026
  • CourseBiomedical Engineering
  • CurriculumGestione del sistema sanitario
  • Year1st year
  • Semester2nd semester
  • SSDING-IND/35
  • CFU6