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Choice of contracts for quality in health care: Evidence from the British NHS

Eleonora Fichera, Hugh Gravelle, Mario Pezzino (mario.pezzino@manchester.ac.uk) and Matt Sutton
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Matt Sutton: Institute of Population Health, Manchester Centre for Health Economics, University of Manchester, UK

No 085cherp, Working Papers from Centre for Health Economics, University of York

Abstract: We examine how public sector third-party purchasers and hospitals negotiate quality targets when a fixed proportion of hospital revenue is required to be linked to quality. We develop a bargaining model linking the number of quality targets to purchaser and hospital characteristics. Using data extracted from 153 contracts for acute hospital services in England in 2010/11, we find that the number of quality targets is determined by the purchaser's population health and its budget, the hospital type, whether the purchaser delegated negotiation to an agency, and the quality targets imposed by the supervising regional health authority.

Keywords: Contracts; quality; financial incentives; pay for performance; hospitals; Nash bargaining (search for similar items in EconPapers)
JEL-codes: C35 I11 I18 L51 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2013-06
New Economics Papers: this item is included in nep-hea
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Citations: View citations in EconPapers (1)

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http://www.york.ac.uk/media/che/documents/papers/r ... y_healthcare_NHS.pdf First version, 2013 (application/pdf)

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