EconPapers    
Economics at your fingertips  
 

Public and Private Provision of Health Care

Pedro Barros () and Xavier Martinez-Giralt ()

Journal of Economics & Management Strategy, 2002, vol. 11, issue 1, 109-133

Abstract: One of the mechanisms that are implemented in the cost containment movement in the health care sectors in western countries is the definition, by the third-party payer, of a set of preferred providers. The insured patients have different access rules to such providers when ill. The rules specify the copayments patients must pay when using an out-of-plan care provider. This paper studies the competitive process among providers in terms of both prices and qualities. Competition is influenced by the status of providers as in-plan or out-of-plan care providers. Also, there is a moral hazard of provider choice related to the trade-off between freedom to choose and the need to hold down costs. It is possible to achieve the first-best allocation by an appropriate definition of the reimbursement scheme when decisions on prices and qualities are taken simultaneously (as in primary health care sectors). In contrast, some type of regulation is needed to achieve the optimal solution when decisions are sequential (as in specialized health care sectors). We also derive normative conclusions on how price controls should be implemented in some European Union member states. Copyright (c) 2002 Massachusetts Institute of Technology.

Date: 2002
References: Add references at CitEc
Citations View citations in EconPapers (36) Track citations by RSS feed

Downloads: (external link)
http://www.blackwell-synergy.com/servlet/useragent ... &year=2002&part=null link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Public and Private Provision of Health Care (2000) Downloads
Working Paper: PUBLIC AND PRIVATE PROVISION OF HEALTCH CARE Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bla:jemstr:v:11:y:2002:i:1:p:109-133

Ordering information: This journal article can be ordered from
http://www.blackwell ... ref=1058-6407&site=1

Access Statistics for this article

More articles in Journal of Economics & Management Strategy from Wiley Blackwell
Series data maintained by Wiley-Blackwell Digital Licensing ().

 
Page updated 2017-07-19
Handle: RePEc:bla:jemstr:v:11:y:2002:i:1:p:109-133