Economic decision analysis for healthcare service: Theory and practice

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Lee, Jinha
Lee, Eva K.
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Health care service system is complex both in its complicated delivery design and in scientific and regulatory requirement. It is high cost, high risk, dynamic, and unpredictable. On one hand, healthcare service providers are challenged by high R&D cost, inefficient process management, variability in quality and necessity of changes to avoid the unanticipated consequences of new regulations. On the user end, they are overwhelmed by the complex service pricing and government regulations, as they often make decisions with asymmetric information with little understanding of what’s best and available in the market. To help guide providers and users and to advance healthcare service research, we carry out theory and practice studies to better understand current issues and provide reasonable decision making framework. In this dissertation, we investigate three broad topics: 1) Network effect on provider and customer dynamics. We perform theoretical analysis of health insurance competitions, and experimental design of proverse selection and network externality in a generalized transaction market. 2) Practice variance and systems analysis for quality and process improvement and new clinical guidelines establishment. This includes a system-approach study of post-operative care in pediatric congenital heart surgery, and investigation of a needle-based epidural procedure in obstetric anesthesia. 3) Computational in-silico drug design and its impact to service delivery for day-to-day healthcare needs and response to emerging diseases.
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