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ECC2700 - Economic issues in health and health care

6 points, SCA Band 3, 0.125 EFTSL

Undergraduate Faculty of Business and Economics

Leader(s): Dr Bruce Hollingsworth


Clayton First semester 2009 (Day)


The nature of the commodity health care and the production of health; traditional alternative theories of demand; economics of insurance and information; behaviour of health care providers including physicians and hospitals; regulation to meet social objectives including equity and justice; hospital payment systems; the role of regulation, licensure and the professions; international comparison of health system design; the technique of using economic evaluation in health care to set priorities.


The learning goals associated with this unit are to:

  • gain an understanding of the nature of health as a produced commodity and the implications for resource allocation in health care
  • identify the sources of market failure in health and health insurance and the issues involved in health system design
  • apply the concepts of agency and incomplete contracts for the analysis of problems in the demand and supply of health care and the organisation of health care funding
  • apply the concepts of efficiency and equity in health and to design and negotiate ways in which the funding of health care can impact on these objectives
  • use the concept of net benefits to evaluate a health care intervention and present the results in both oral and written form.


Within semester assessment: 35%
Examination (2 hours): 65%

Contact hours

3 hours per week



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