Health economists are professionals who combine their knowledge of economics and the healthcare industry to analyze cost effective systems and how healthcare resource are used and distributed. They focus on ways to better understand the healthcare system, improve health care policies, improve medical care and the quality of patient care.
Health Economics
Health economics is a new subfield of economics that analyzes various healthcare related topics and healthcare markets. For example, some health economics professionals apply and evaluate the long term effects of lifestyle choices on health and problems faced because of inadequate health policy. Others examine the estimated costs and benefits of new or proposed health care policies, making an economic evaluation. One health economist may propose more efficient ways to provide medical care and certain health care services, while another may promote health policy that seeks to increase the cost effectiveness of programs and institutions.
Health economics involves scientific research and psychology and sociology theories. This is especially true when health economists analyze collective behaviors in order to ascertain how members make health-related choices. The data and recommendations from this research are shared with health care leaders and public policymakers in government agencies and private companies. Companies promoting health in both the public and private sector working to improve patient outcomes may hire people with a background in healthcare economics.
Academic Options
Most health economists have an undergraduate degree in economics, but a graduate degree is highly recommended. Competition is highest in the private business sector where health economists are some of the highest paid professionals. One of the most common graduate degrees is the master of health science (MHS) in health economics.
During the first two terms, students will study microeconomic mathematics, statistical methodologies and public health economics. They will also learn about research ethics, economic evaluations and the principles of epidemiology. During the last two terms, students will study advanced public health statistics and economics as well as econometrics and microeconomic evaluations.
Core Skills
After graduation, health economists apply their knowledge and will understand the critical roles that economic reasoning and cost-analyses play in forming public health care policies. Graduates will understand the interrelationships between economics and biostatistics, epidemiology, public health and disease modeling. Based on this knowledge, health economists produce data driven research regarding health services, systems and interventions.
Health economists must have advanced math and computer skills because they frequently create analytical and statistical models with complex software programs. They will use economic theories to predict public and organizational responses to policy changes and incentives. Finally, they provide detailed input for econometric analyses of policy changes and interpret the statistical results.
Work Locations
Health economics professionals in the private sector may find work in insurance, health care or biotechnology companies. They may work with executives to create strategic plans for new health care products or technologies. They will work with marketing and operational managers to maximize profits through providing in-depth health consumer research.
In the government sector, health economists typically work for the Departments of Labor, Health and Commerce. Many are employed by the lesser-known Congressional Budget Office. Some of these health economists assess health policy, such as those that impact occupational health, whereas others evaluate how cost effective current processes and regulations are.
Workers in health economics play key roles as independent researchers and consultants who analyze things like clinical trials, doctor-patient relationships and international economic regulations.
How is the job outlook for Health Economists?
Health Economists can expect a health job outlook that is robust, with a growth of 13% expected 2020-2030–faster than average growth. The median annual wage for economists in general was $105,630 in May 2021 according to the Bureau of Labor Statistics.
What is the professional organization for professional Health Economists?
Professional organizations promote the profession and provide educational program information and continuing education for those in the field. Those aspiring to work in the important field of health economics who wish to learn more may visit the American Society of Health Economists’ (ASHEcon) website. ASHEcon promotes excellence in health economics research in the United States and operates as a forum for emerging ideas and empirical results of health economics research. They use professional activities to advance health economic research and enhance health by providing evidence and expertise for policy development.
Goals of ASHEcon include: promote professional development, encourage entry into and advancement in the field, promote application of economics to the study of health, medical organizations, and policy relating to health, advance research in the field, support effective teaching of health economics, and disseminate health economics research and other information about health economics.
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MPH Staff, Updated August 2022