This text introduces simple economics concepts and some of the ways in which economic analysis can contribute to health service policymaking. It covers the concept of the market for health care, the problems of determining and measuring the output of the health care sector, and the relationship between consumer demand and the professional's assessment of need. It examines medical ethics and equity which both tend to conflict with efficiency, and alternative financing systems for health care. The second edition has been updated to reflect new work, making it indispensable for all concerned with health care management. This introductory text will prove essential reading for both teachers and professionals in health service management, and social and public policy courses which focus on health. Contents: Preface to the First Edition; Preface to the Second Edition; Introduction; Economics and Health Economics; The Nature of the Commodity; Health Status Measurement; Values in Healthcare; Need, Demand and the Agency Relationship; The Inefficiency of Medical Ethics; Just Health Care: Only Medicine; Healthcare Financing and Organization; Future Challenge.