Overview

U.S. Healthcare Strategy

The U.S. healthcare sector accounts for 17 percent of GDP, and encompasses a diverse set of industries with public, nonprofit, and for-profit buyers and sellers. There are significant concerns about high and rising spending, and substantial opportunities to increase the efficiency of the sector while improving quality. This course will delve into strategic challenges facing firms in multiple healthcare sectors, using frameworks and insights from business strategy, microeconomics, and health policy. The case discussions will emphasize how strategic principles can be applied in healthcare settings to identify sources of competitive advantage (or disadvantage). We will also evaluate the impact and optimal design of governmental policies and regulations - from the perspectives of business as well as society.

A secondary goal of the course is to familiarize students with the industries and institutions shaping the healthcare industry in the U.S. Our focus will be on payers and providers, but we will also devote 20% of our time to drugs and devices (which comprise about that share of healthcare spending). Throughout, we will discuss U.S. healthcare reform (past and future) – particularly payment reform - and its implications for the various industry sectors.

This course will not be taught in 2020-2021 while Professor Dafny is on leave.