This book provides an analytical approach to the study of medical care and illustrates the usefulness of economics to the understanding of public policy issues in medical care. Applications are supported by real-life examples. The emphasis is on financing and delivery of personal medical services, reflecting current policy issues, and federal and state legislation. This is a comprehensive survey of the definition, measurement, and selection of public policies to achieve economic efficiency and equity in the financing and delivery of personal medical services. The previous edition of this book was published in 1983.