In recognition of Joseph P. Newhouse

In recognition of Joseph P. Newhouse

Available online at www.sciencedirect.com Journal of Health Economics 26 (2007) 1071–1072 In recognition of Joseph P. Newhouse Joe Newhouse has bee...

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Available online at www.sciencedirect.com

Journal of Health Economics 26 (2007) 1071–1072

In recognition of Joseph P. Newhouse

Joe Newhouse has been a leading scholar in US health economics for nearly 40 years. Few topics in health economics are without a definitive Newhouse paper. His path-breaking research spans the areas of demand response, health care payment systems, risk adjustment, the role of technology in cost growth, medical malpractice, and the impact of bad health habits, among others. Joe’s CV sparkles with awards commending his research. He was the first recipient of the David N. Kershaw Award honoring persons under 40 for distinguished contribution to public policy analysis and management. In 1988, he received the Baxter Health Services Research Prize and the Administrator’s Citation from the Health Care Financing Administration. AcademyHealth twice selected Joe’s (and coauthors’) papers as article of the year, and in 1992 Joe received the Association’s Distinguished Investigator Award. Other honors include the Hans Sigrist Foundation Prize for distinguished scientific achievement; the American Risk and Insurance Association’s Elizur Wright Award for an outstanding contribution to the literature on risk and insurance literature, for Free for All?; the first Zvi Griliches award, for Are Medical Prices Declining?; the Kenneth J. Arrow Award, for How Does Managed Care Do It?; and the Paul A. Samuelson Certificate of Excellence from TIAA-CREF, for Pricing the Priceless. Joe is also a leader of scholars, conceiving and carrying out some of the most significant projects in our field, most notably the RAND Health Insurance Experiment (HIE). As a young 0167-6296/$ – see front matter doi:10.1016/j.jhealeco.2007.11.001

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R. Frank, T. McGuire / Journal of Health Economics 26 (2007) 1071–1072

researcher at RAND, Joe recognized the need for a new research approach to studying demand – a definitive “experiment” – to avoid the selection issues and data gaps in the existing literature. At the time, this idea was not only revolutionary but extremely ambitious. Joe first had to convince the federal government it needed the results only an experiment could yield. Once he “induced demand” for the research, Joe proceeded to lead RAND’s effort to win the competition to carry out one of the largest social science experiments in US history. In effect, Joe managed both an unprecedented research effort and a small health insurance company for five years. Papers and books from the HIE remain the foundation for our understanding of demand response, health status, and health care quality measurement. Joe had the vision and energy to found the Journal of Health Economics, going against the judgment of some senior health economists who saw little market for high-quality economics aimed entirely at the health sector. In fact, Joe, with Tony Culyer, created a journal that would come to anchor the emerging field of health economics. The Journal of Health Economics is regularly among the top 10 economics journals, as measured by “impact factor,” which captures the citation frequency of articles in the Journal of Health Economics. Joe has personally edited well over 1000 papers. When starting a new job, most academics think about what course they are going to teach. When Joe came to Harvard in 1988, he started an entirely new PhD program in health policy – which is now recognized as a model of collaboration across the major schools at Harvard. More important, the Harvard Health Policy PhD is an active, successful educational program, with 70 students in residence and its graduates in high demand. One can find graduates of Joe’s program on the faculties of major research universities with active programs in health policy, in government health agencies, and in major health care foundations. Throughout his career, Joe has sought public service. He has served as chair of the Prospective Payment Assessment Commission, commissioner of the Physician Payment Review Commission, and vice-chair of the Medicare Payment Advisory Commission. He was elected to the Institute of Medicine at age 35 and has served two terms on its governing council. He is also past president of the Association for Health Services Research (now AcademyHealth) and the International Health Economics Association, and was the inaugural president of the American Society of Health Economists. Those fortunate enough to work closely with Joe recognize all that goes into these accomplishments. Brains and hard work are necessary ingredients; but to be entrusted so extensively and for so long with leadership in research, education, and public service calls for character. Joe is sensible, straightforward, direct, and fair; he can be depended upon to always speak the truth as he sees it. He has a graceful, light touch in managing professors and others with whom he works, which stems from his kind, caring nature and the fundamental respect he has for others. A leading scholar, a leader of scholars, an exceptional man – that’s Joe Newhouse in a nutshell. Richard G. Frank Thomas G. McGuire