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This book is a thorough, balanced, and insightful study of the present status and future direction of health care economics and its far-reaching ramifications. Health Economics provides exhaustive analyses of such major issues as cost-benefit, cost-effectiveness, quality enhancement, and technology assessment. Part One presents a basic overview of cost analysis, production functions, and provider cost behavior. Part Two considers economic models of physicians and hospital behavior, and recent changes in methods for paying physicians. Part Three focuses on employee cost sharing, HMOs, gatekeepers to contain utilization, and the use of case managers in long-term care. Part four looks at equity, social welfare, and the unique problems of urban medical centers. Part Five focuses on consumer information, quality measurement, and health manpower policies for nonphysician providers. Cost-effectiveness and cost-benefit analysis is reviewed in Part Six. The last part summarizes major future policy options and suggests a number of mixed strategies, including capitation. In short, Health Economics provides policy makers, health care providers, and students with the analytical tools needed to effectively balance efficiency and quality.