Many changes are underway in healthcare as a result of both the Affordable Care Act (ACA) and insurers ability to discern between efficient and inefficient healthcare providers. With more emphasis being placed on exceptional value for customers, healthcare managers must have a solid understanding of economics to lead them through these turbulent times. In this new edition, the author examines efforts to control costs many of which are being implemented by private insurers while addressing initiatives such as population health and improved patient experiences in care. This text can serve as a practical guide for future healthcare managers to help simplify and improve decision making when faced with everyday issues, such as market demand, profitability, risk, and regulations. This thoroughly revised edition includes: •New content throughout the book that discusses the features of the ACA and its economic impact on healthcare providers and insurers •A new chapter, Bending the Cost Curve, that addresses reducing costs per patient while improving patient care •A final chapter titled Behavioral Economics that explains why rational decision making may be limited and provides ways to improve decision making •Cases and contemporary research in economics that highlight the changes in healthcare over the past decade This book provides a broad framework of healthcare economics and is suited for introductory-level courses in both undergraduate and graduate health administration programs.