Content

The lecture “Economic Theory” is divided into two main sections:

• Fundamentals of Supply and Demand
• Decisions made by Households and Firms

Within this lecture, various topics are covered, including the basics of Economic Theory as a science, important concepts such as market economy and planned economy, markets and prices, market mechanism, and market equilibrium. Furthermore, the fundamentals and elasticity of supply and demand are explained. The lecture also explores regulations implemented by both the market and the state, examining the effects of governmental interventions. It also addresses consumer behavior, individual demand, decision-making under uncertainty, production costs, profit maximization, and competitive bids. Competitive markets, market power (including monopolies and monopsonies), and pricing under market power are also analyzed. These topics are crucial for understanding economic theory and its applications.

Objective

Economics analyzes supply and demand within an economy where various actors—state, businesses, households, and individuals—make economic decisions and interact in markets. Economics addresses the scarcity of resources and its impact on resource allocation. As a social science, its primary task is to determine the most efficient use of resources to achieve private and societal goals. Actors influence supply and demand through their economic decisions. Microeconomics, in particular, examines the effects of individual human behavior and actions since private resources are also limited. An optimal distribution of individual resources helps maximize the utility of available means. Therefore, individual decisions must be made due to resource scarcity. Economists analyze these decisions, advising others on the efficient allocation of scarce resources. Microeconomics focuses on the decisions made by individuals and firms regarding the allocation of these scarce resources. It develops models based on observed human behaviors and tests these models against real-world (experimental) observations. Economics, in its application, can be either positive or normative. Positive theory describes economic behavior and predicts expected outcomes when certain conditions change. These explanations, conclusions, and predictions of positive theory can then be applied normatively to prescribe actions for individuals, businesses, and governments to achieve maximum success (utility) for market participants. The expansion of economic implications when transitioning from positive to normative theory requires consideration of ethical or moral principles or theories. Inferring what should be from what is, or prescribing what actors should do, involves the implicit application of value judgments or principles.

Implications for Future Careers in Healthcare

Understanding economic theory opens up important career prospects in healthcare. It enables professionals to analyze economic aspects in the healthcare sector and make informed decisions. Knowledge about supply and demand, markets and pricing, as well as optimizing scarce resources, is vital for efficient resource allocation within the healthcare system. This understanding contributes to improving the quality and efficiency of healthcare services, allowing for the incorporation of economic factors into the planning and implementation of health policy.

Content

The “Health Economics” module is divided into two main sections: “Resource Generation and Financing” and “Resource Utilization and Organization”. Due to an aging population and advancements in medical technology, Germany faces financial challenges in healthcare provision. This module focuses on describing and analyzing methods and strategies of financing, as well as examining potential system reforms. It also compares international health expenditures and analyzes financing needs under various demographic scenarios. The economic analysis of financial protection against healthcare costs encompasses discussions on market and government failures in the health insurance sector, the consequences of moral hazard within statutory health insurance, as well as the selection and compensation of insurance risks (risk structure compensation).

Objective

The primary goal of the module is to introduce students to the decision-making behavior of households and to convey fundamental economic principles. Participants will be enabled to apply economic analyses to current health policy issues. Moreover, various approaches to reforming the financing of statutory health insurance will be presented and discussed. Another focus is the application of microeconomic theories to the specific characteristics of markets for health goods, insurance, and provision contracts. Students should also be able to assess concrete reform proposals and evaluate the conditions and control mechanisms for resource utilization in the German healthcare system.

Professional Implications in Healthcare

A thorough understanding of the financial aspects and economic principles of healthcare effectively prepares students for future careers in the healthcare sector. They will be equipped to make informed decisions based on economic criteria and to understand and critically assess proposed reforms. This knowledge allows students to actively contribute to enhancing the efficiency and quality of the healthcare system and to participate knowledgeably in health policy discussions and decision-making processes.

Content

A primary responsibility of actors in the healthcare sector is to identify the optimal alternative solution for providing health goods, taking into account various constraints including safety, risk, outcomes, time, and financial resources. Decision-making is complicated by numerous uncertain factors, including the natural variability of outcomes, changing environmental conditions, and incomplete knowledge of the medical and nursing issues being considered.

Objectives

Lecture 1 - Health Economics: Evaluation Methods

The first part of this module focuses on the health economic evaluation of health goods and services. Given the rising demand and limited financial resources, a critical question addressed is how and where the scarce resources in healthcare should be most effectively deployed. Upon completion of this module, students should be able to critically analyze the utilization of health goods and services, taking into account limited financial resources.

Lecture 2 - Decision Science: Data Analysis

The second lecture imparts fundamental statistical methods, with particular emphasis on the theoretical foundations of these methods. It addresses the prerequisites for their use and their application in the fields of medicine, econometrics, and health sciences, as well as the appropriate interpretation of results. Following an introduction to descriptive statistics (including measures of central tendency, measures of dispersion, and correlation coefficients), data collection, and basic probability theory concepts, methods allowing for probability-based inference from a sample to the underlying population are introduced. Procedures for point estimation, interval estimation, and significant hypothesis testing are applied in the context of health economic questions, with a particular, practical deepening into regression analysis.

Professional Implications in Healthcare

Understanding health economic evaluation methods and data analysis in Decision Science opens up valuable career prospects in healthcare for students. This knowledge enables professionals to analyze economic aspects in the healthcare sector and make informed decisions. The acquired skills are essential for efficient resource allocation in the healthcare system, especially under financial constraints. This contributes to improving the quality and efficiency of healthcare provision and allows for the informed incorporation of economic considerations into the planning and implementation of health policy initiatives.

Content

This module addresses various facets of Health Economics and Behavioral Economics while emphasizing the modeling of complex decisions within the healthcare sector. Tools like Cost Analysis, Cost-Effectiveness Analysis, Cost-Benefit Analysis, and Cost-Utility Analysis are introduced to students. Practical capturing and evaluation of costs and effects associated with healthcare services are discussed, providing students with a comprehensive understanding of economic evaluation methods in healthcare.

Objectives

Lecture 1 - Behavioral Economics: Decision Behavior Analysis

This lecture delves into Behavioral Economics, highlighting its distinctions from traditional economic theories. Students are guided to identify and describe heuristics and cognitive biases in everyday life. Furthermore, a direct connection between Behavioral Economics and decision-making processes in healthcare is established, enabling students to identify and elucidate decision and behavior patterns, as well as cognitive biases.

Lecture 2 - Decision Science: Modeling Complex Decisions

The second lecture focuses on the modeling of complex decision-making processes within organizations, specifically in the healthcare sector. Various methods for structuring and analyzing complex decision problems are introduced. Participants will learn how to systematically and transparently integrate value judgments, priorities, and preferences into the decision-making processes. All presented approaches share the common feature of considering the overall utility of an alternative as a multidimensional construct.

Professional Implications in Healthcare

This module equips students with crucial skills and knowledge essential for their professional future in healthcare. They will be proficient in applying economic evaluation methods, recognizing and considering cognitive biases, and structuring complex decision problems in healthcare effectively. These competencies are vital for professionals aiming to work in health management, health policy, and health consulting fields.