| Course | IHP 620 Economic Principles of Healthcare |
|---|---|
| Module | Module 1 |
| Paper type | MS Healthcare Administration discussion post on health care market failures |
| Length | About 400 words, 3 pages |
| Format | APA 7 student paper |
| School | Southern New Hampshire University |
| Program | MS Healthcare Administration |
| Updated | September 2026 |
Free sample paper for IHP 620 Module 1
Module One Discussion
Shopping Will Not Fix It
Our system's self-insured employee health plan covers about 21,000 people and costs $142 million a year, growing about 8% annually. At a recent budget meeting, an executive said the answer was obvious: give employees higher deductibles and let them shop like they do for cars. This week's readings suggest that answer misunderstands the market we are in.
Arrow (2001), in an essay first published in 1963 and reprinted with commentary, argued that medical care differs from most goods in ways that defeat ordinary competitive markets. Demand for care is irregular and unpredictable, arising with illness rather than planned purchases. Patients cannot judge the quality of care the way they can judge a car, because the physician knows far more than they do, and that information gap is the very reason they seek care. As a result, trust, professional ethics and licensing do work that prices do elsewhere, and insurance, which is necessary because illness is unpredictable, weakens the link between price and use.
Akerlof (1970) showed with his market for lemons how hidden information can unravel a market. When sellers know the quality of a used car and buyers do not, buyers offer only an average price, good cars leave the market and quality spirals downward. He noted health insurance for older adults as an example: when insurers cannot tell who is sick, premiums rise, healthier people drop out and the pool worsens. Our plan faces a version of this every open enrollment, when employees who expect high costs choose the richest option.
Fisher et al. (2003) compared Medicare beneficiaries living in regions with high and low spending and found that residents of high-spending regions received more care, particularly more specialist visits, tests and hospital days, but not better quality, access or outcomes. Much of the difference reflected supply, such as how many specialists and beds a region had, rather than patient illness or preference. That finding matters for us: a large share of our plan's cost may be driven by how care is organized and supplied, not by employees' shopping habits.
None of this means prices and incentives do not matter; they clearly do. But a plan built on the idea that patients can shop their way to lower costs ignores uncertainty, information gaps and supply effects. For classmates: where have you seen patients unable to act like consumers, and what did your organization do about it?
References
Akerlof, G. A. (1970). The market for "lemons": Quality uncertainty and the market mechanism. The Quarterly Journal of Economics, 84(3), 488-500. https://doi.org/10.2307/1879431
Arrow, K. J. (2001). Uncertainty and the welfare economics of medical care. Journal of Health Politics, Policy and Law, 26(5), 851-883. https://doi.org/10.1215/03616878-26-5-851
Fisher, E. S., Wennberg, D. E., Stukel, T. A., Gottlieb, D. J., Lucas, F. L., & Pinder, É. L. (2003). The implications of regional variations in Medicare spending. Part 1: The content, quality, and accessibility of care. Annals of Internal Medicine, 138(4), 273-287. https://doi.org/10.7326/0003-4819-138-4-200302180-00006
What the IHP 620 Module 1 instructions ask for
The opening IHP 620 discussion usually asks what makes health care economically different from other markets and how those differences affect organizations. Plan a main post around 350 to 450 words citing a few scholarly works in APA 7, then return by the second deadline for peer replies. Define the key features, such as uncertainty, information asymmetry and the role of insurance, accurately and apply them to a real claim or decision you have encountered. Balance the argument by acknowledging where prices and incentives still matter, and pose a question that draws on classmates' workplaces. IHP 620 graders notice clean headings in IHP 620 papers. IHP 620 names and dates need checking before IHP 620 submission. IHP 620 prompts vary by term, so recheck IHP 620 directions.
How this IHP 620 Module 1 discussion example is built
In this post, a composite financial planning manager tests an executive's claim that higher deductibles and consumer shopping would stop an employee plan's 8% cost growth. Arrow's analysis explains unpredictable demand, information gaps and the role of trust, Akerlof's market for lemons illustrates selection during open enrollment and Fisher and colleagues show that higher regional spending reflected supply rather than better care. The writer concludes that shopping alone cannot fix costs and asks classmates where patients could not act as consumers. IHP 620 students can reuse this structure for IHP 620 work. IHP 620 claims here trace to cited IHP 620 sources. IHP 620 readers can adapt each section to IHP 620 data.
Where the IHP 620 Module 1 rubric puts the points
Discussion posts on health care markets are generally graded on accurate definition of economic concepts, application to a concrete case, use of scholarly and empirical sources, balanced reasoning, APA 7 formatting and peer responses with substance. Stronger posts connect classic theory to evidence and avoid overstating either market or anti-market positions. Posts lose credit when concepts are defined loosely, when the post summarizes readings without applying them or when replies offer agreement without a new example or question. IHP 620 marks favor careful formatting across IHP 620 sections. IHP 620 citations keep every IHP 620 argument credible. IHP 620 instructors weigh evidence heavily in IHP 620 grading.
IHP 620 Module 1 help: the mistakes that cost points
First IHP 620 posts often define market failure in general terms without applying it, cite only textbook theory or argue that markets never work in health care. Peer responses that merely echo a classmate earn little. Define each concept precisely, apply it to a real decision with numbers, add at least one empirical study and acknowledge where incentives do matter. Share your workplace context and the IHP 620 prompt so the post fits your experience. IHP 620 drafts start well from a IHP 620 outline. IHP 620 feedback already received guides IHP 620 revisions. IHP 620 rubrics posted in Brightspace clarify IHP 620 expectations.
Get IHP 620 Module 1 written to your instructions
Share the IHP 620 Module 1 prompt and a cost or market claim you have heard at work. The post will define the key economic concepts, apply them to your example with evidence and invite peers to share their own cases, within 24 to 48 hours, free the first time. The paper above is an original model document written by our desk, not a submitted student paper and not an official Southern New Hampshire University document.
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IHP 620 Module 1 questions, answered
Where can I find a free IHP 620 Module 1 Discussion sample?
IHP 620 Module 1 appears here in full as a financial planning manager's post on why health care defies ordinary market logic.
What did Arrow argue about medical care?
That uncertainty about illness and treatment, information gaps between doctor and patient and the role of trust make medical care unlike ordinary markets.
What is the market for lemons?
Akerlof's model showing how hidden information about quality can drive good products out of a market and cause it to unravel.
Does higher health spending mean better care?
Not necessarily; studies of U.S. regions found higher spending brought more services but not better quality or outcomes.
Do prices matter in health care at all?
Yes; patients do respond to prices, but uncertainty, information gaps and insurance limit how well ordinary markets work.