Multiple pricing for personal assistance services
Tommy Andersson,
Lina Maria Ellegård,
Andreea Enache,
Albin Erlanson and
Prakriti Thami
Economic Modelling, 2024, vol. 141, issue C
Abstract:
Third-party payers often reimburse health care providers based on prospectively set prices. Although a key motivation of prospective payment is to contain costs, this paper shows that this aspect crucially depends on the design of the pricing scheme due to the well-known incentives of patient selection (or “dumping”). This paper provides a general theoretical framework where heterogeneous users are served by either private for-profit or public providers, each paid an hourly compensation by a third-party payer. The private, but not the public providers may select patients. It is demonstrated that this realistic feature of the model implies that total costs depends on the number of prices. The features of the model is illustrated using the Swedish system of personal assistance services as a motivating example. Numerical results show that marginal adjustments to the current uniform pricing scheme would lead to substantial savings.
Keywords: OR in health services; Personal assistance; Public and private providers; Multiple pricing; Welfare; Dumping (search for similar items in EconPapers)
JEL-codes: C61 D47 D78 I11 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999324002736
Full text for ScienceDirect subscribers only
Related works:
Working Paper: Multiple Pricing for Personal Assistance Services (2024) 
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: https://EconPapers.repec.org/RePEc:eee:ecmode:v:141:y:2024:i:c:s0264999324002736
DOI: 10.1016/j.econmod.2024.106916
Access Statistics for this article
Economic Modelling is currently edited by S. Hall and P. Pauly
More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().