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Vertical relationships between health insurers and healthcare providers

Michiel Bijlsma, Arno Meijer and Victoria Shestalova

No 167, CPB Document from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: The current institutional reforms in the Dutch healthcare sector may increase the extent of vertical relations (such as vertical contracts and vertical integration) between insurers and healthcare providers. Vertical relations may have both welfare increasing and welfare reducing effects. In this study, we focus on the latter, in particular on anticompetitive foreclosure. We distinguish three possible mechanisms that may lead to anticompetitive foreclosure, called respectively 'exclusivity', 'sabotage', and the 'waterbed effect'. We discuss under which conditions they come into play and which policy measures can prevent them.

JEL-codes: D4 I11 I18 (search for similar items in EconPapers)
Date: 2008-08
New Economics Papers: this item is included in nep-com and nep-hea
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Citations: View citations in EconPapers (2)

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