Professor Garthwaite is the Herman R. Smith Research Professor in Hospital and Health Service, an Associate Professor of Strategy, and the Director of the Program on Healthcare at Kellogg (HCAK). He is an applied microeconomist whose research examines the effects of government policies and social phenomena with a focus on health and biopharmaceutical sectors. His recent work has focused on the private sector effects of the Affordable Care Act, including the labor supply effects of large insurance expansions, the changes in uncompensated hospital care resulting from public insurance expansions, and the responses of non-profit hospitals to financial shocks. In prior work, he has examined the impact of government cash assistance programs on health and the effect of changes in expected mortality from the emergence of crack-cocaine markets on educational attainment.
Professor Garthwaite also studies questions of pricing and innovation in the biopharmaceutical sector. In this area he has examined the effect of 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 Review of Economics and Statistics and Health Affairs and has been profiled in media outlets such as the Wall Street Journal, the Washington Post and Vox. 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.