Contents:The Context of health and health care:Health and health care -- What is health? -- What is health care? -- What do health care and health do for people? -- Health and health care across the world -- Conclusion -- Economics and efficiency:More in areas more about-but at a diminishing rate -- Substitution:more than one way to skin a cat' -- Scarcity:a dismal reality for the dismal science -- Supply and demand-and the magic equilibrium -- Conclusion. -- Equality ans fairness:Externalities :unselfishly motivated -- Transfers in cash or in kind -- Three theories of distributive justice -- The health frontier and trade-offs -- Conclusion ans some conceptual clarifications -- Intervening in the determinants of health -- The health environment -- The physical environment -- The social environment -- Conclusion -- Health-related lifestyle -- Diet -- Exercise -- Substance -- Conclusion -- Financing health care:Uncertainty and health insurance -- The welfare gain from insurance -- Moral hazard -- Risks differ:actuarially fair insurance -- Adverse selection -- Conclusion -- Patient Payments:The third party or the patient pays -- Co-Payment,co-insurance,co-funding,cost sharing -- Deductibles -- Distributive implications -- Negative patient payments -- Autonomous consumer or complaint patient -- Conclusion. -- Paying health care providers:Primary care -- Fee for service -- Capitation -- Salary -- Comparing three payments systems -- Conclusion -- Secondary care:reimbursement -- Prospective fixed budgets -- Prospective variable -- Macro vs micro level -- conclusion -- Integrating the health care provider system Interventions:integration and incentives -- Conclusion -- Economic evaluation and priority setting:Non-monetary effects and monetary benefits -- Incommensurable outcome measures -- commensurable measures of health effects -- production gains resulting from improved health -- Threshold values and net monetary benefits -- conclusion -- Cost and discounting:Average vs marginal costs -- identifying cost items:analysis viewpoint -- Health service cost -- Non health service cost -- The discount rate -- Conclusion -- Equity issues:going beyond CBA and ICER: Productivity changes and willingness to pay vary with income -- Health gain:size and distribution matter -- Severity:equality in prospective health -- Age:equality in total health -- causes of health -- Consequences beyond patients health gains Conclusion.