Professor Garthwaite is the Herman R. Smith Research Professor in Hospital and Health Services, a Professor of Strategy, and the Director of the Program on Healthcare at Kellogg (HCAK). He is an applied economist whose research examines the business of healthcare with a focus on the interaction between private firms and public policies.
His recent work in the payer and provider sectors has focused on the private sector effects of the Affordable Care Act, the impact and operation of Medicaid Managed Care plans, the responses of non-profit hospitals to financial shocks, and the economic effects of expanded social insurance programs such as Medicaid and Medicare for All.
Professor Garthwaite also studies questions of pricing and innovation in the biopharmaceutical sector. In this area he has examined the effect of changes in market size of investments in new product development, the evolving world of precision medicine, expanded patent protection on pricing in the Indian pharmaceutical market, the innovation response of United States pharmaceutical firms to increases in demand, and the relationship between health insurance expansions and high drug prices.
His research has appeared in journals such as the Quarterly Journal of Economics, the American Economic Review, the Annals of Internal Medicine, and the New England Journal of Medicine. In addition, he is a frequent media commentator appearing in media outlets such as the Wall Street Journal, the Washington Post, and The New York Times. He has also appeared as a guest on various television and radio shows such as Nightly Business Report and NPR Marketplace. In 2015, Professor Garthwaite was named one of Poet and Quants 40 Best under 40 Business School Professors.
Garthwaite received a B.A. and a Masters in Public Policy from the University of Michigan and his PhD in Economics from the University of Maryland. Prior to receiving his PhD, he served in a variety of public policy positions including the Director of Research for the Employment Policies Institute. He has testified before the United States Senate, United States House of Representatives and state legislatures on matters related to the healthcare markets, prescription drugs, the minimum wage, and health care reforms.
Based on time-tested economic principles for profitability and growth, this program offers strategy-focused leaders a blend of modern theory, strategic analysis and practical application for sustaining an organization’s long-term competitive advantage.
This course delves into the strategic issues faced by healthcare firms. We will use concepts from the core strategy course (STRT-431) as an organizing framework, and discuss where and why the healthcare sector deviates from the norm. For example, what is the role of competitive positioning when quality is so difficult to measure? How can you remain profitable if you compete against not-for-profits who don't face taxes?
Because a great deal of healthcare strategy relies on understanding the nitty-gritty of particular industries, we will spend time learning about several of these, including health insurance, hospitals, pharmaceuticals, and medical devices. Although our focus is on private firms in the U.S., we will (of necessity) be discussing the role of the government in regulating and providing healthcare, and (time permitting) discuss some international issues. This is a lecture and case-based discussion course with group projects and a final exam.
Healthcare Deep Dive StudentsPlease note that students cannot be enrolled in classes that overlap time. If you are accepted into a Deep Dive course, you will need to drop any conflicting course secured through the bidding process or otherwise. This applies to all time conflicts, even if the time conflict only occurs on 1 or 2 occasions.
This course focuses on questions of value creation and capture, capital allocation, portfolio construction, deal financing in the biopharmaceutical sector. The professor will build on his time as the head of Bainâ€™s Healthcare Practice and the Chief of Strategy for Horizon Therapeutics to provide students with a framework for understanding the management of larger biopharmaceutical firms.