Western Governors University

D914: Healthcare Economics

A WGU Master of Healthcare Administration course on economic principles, financial management and the payment systems that shape healthcare delivery.

Updated October 2026 · 5 min read

D914 Healthcare Economics is a course in Western Governors University's Master of Healthcare Administration, with no prerequisites.

WGU describes it as giving learners a comprehensive understanding of the economic principles, financial management strategies and reimbursement mechanisms behind the healthcare industry.

Learners build skills to analyze healthcare markets, make informed financial decisions and understand the payment systems that influence care delivery and policy. Students from clinical backgrounds often find the finance language the steepest part of the climb.

Course at a Glance

ItemDetails
UniversityWestern Governors University
Course codeD914
ProgramMaster of Healthcare Administration
LevelGraduate
PrerequisitesNone listed
Typical workEconomic and financial analysis of healthcare scenarios (confirm the format in your course page)

What D914 Covers

ThemeWhat to be able to do
Economic principlesApply supply, demand, costs and incentives to healthcare
Healthcare marketsAnalyze competition, access and market structure
Financial management strategiesBudget, price and assess financial performance
Reimbursement mechanismsExplain how providers are paid and how that shapes behavior
Policy influencesLink payment systems to policy goals

Key Concepts Explained

How Payment Models Create Incentives

Fee-for-service pays per service, which can reward volume. Capitation pays a fixed amount per person, which rewards efficiency but risks under-service. Value-based models tie payment to quality and cost outcomes.

Example: A practice has 2,000 patients under capitation at $40 per patient per month, giving $80,000 monthly. If average care costs $36 per patient ($72,000), the practice keeps $8,000. If costs rise to $44 ($88,000), it loses $8,000. The model shifts financial risk from the payer to the provider.

Costs and Decision Making

Fixed costs do not change with volume in the short run. Variable costs do. Break-even analysis asks how many services are needed to cover fixed costs, and it informs decisions such as opening a new clinic.

Supply, Demand and Healthcare

Healthcare departs from simple markets because patients rely on providers for information and insurance weakens price signals. Naming these differences shows deeper understanding.

Typical Assignments and How to Approach Them

The excerpts of WGU's guide available do not list detailed tasks, so this table describes work typical of the subject.

Task typeWhat it testsHow to approach it
Reimbursement analysisUnderstanding payment modelsCompare models on incentives, risk and quality
Financial decision caseCosts and break-evenShow calculations and state assumptions
Market analysisApplying economic principlesDefine the market and describe forces acting on it
Policy briefLinking economics to policyState the issue, options and likely effects

Comparing Payment Models

A comparison table is often the clearest way to present payment models.

ModelIncentiveMain risk
Fee-for-serviceMore services means more revenueOveruse and rising costs
CapitationKeep patients healthy and costs lowUnder-service
Value-based paymentReward quality and cost togetherMeasurement burden and risk selection

Where Students Get Stuck

Study Tips for D914

A Break-Even Example

Example: A new imaging service has fixed costs of $240,000 a year (equipment lease and staff). Each scan costs $30 in supplies and is reimbursed at an average of $150, so each scan contributes $120. Break-even is $240,000 / $120 = 2,000 scans a year, about 167 a month. If demand analysis suggests only 1,500 scans, the service would lose $60,000 and leaders must consider changing price mix, cost or scope.

State your assumptions about volume, payer mix and cost, and show how the answer changes if one assumption moves.

Linking Economics to Policy

Many tasks ask you to connect an economic idea to policy or organizational strategy. A short argument pattern helps: describe the incentive created by a payment rule, predict how organizations are likely to respond, and weigh the effect on cost, access and quality.

For instance, a payment that rewards each procedure may encourage more procedures, while a fixed payment per episode of care may encourage efficiency but also risks cutting needed services. Back each prediction with research, state the groups who gain or lose, and finish with a balanced judgment about trade-offs rather than a one-sided verdict.

How We Help with D914

Send the prompt, figures, rubric and feedback. A tutor can explain economic and financial concepts with fresh examples, work through calculations step by step, or review your draft. For wider support, see our healthcare management assignment help guide.

GradeEssays is independent of Western Governors University. Our work is a study and reference aid: use it to understand the method, then write and submit your own work under WGU's academic integrity policy. Every order is written from scratch, with free revisions within the scope of your original request and a full refund if it is late.

Make Sense of Your D914 Work

Share the prompt, data and rubric. A tutor prepares a worked model with the reasoning explained.

Start My D914 Help

Free revisions · Full refund if late · Written from scratch for your order

Frequently Asked Questions

Does D914 have prerequisites?

WGU lists none.

What does D914 cover?

Economic principles, financial management strategies and reimbursement mechanisms in healthcare.

What is capitation?

A fixed payment per person per period, regardless of how much care is used.

Why is healthcare not a standard market?

Patients depend on providers for information, and insurance weakens price signals.

How is the course assessed?

WGU is competency-based. Check your course page for the format.

Can GradeEssays complete my D914 assessment for submission?

No. We provide tutoring and feedback only, and you must submit your own work under WGU's policy.