EconPapers    
Economics at your fingertips  
 

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) 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: 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 ().

 
Page updated 2025-03-27
Handle: RePEc:eee:ecmode:v:141:y:2024:i:c:s0264999324002736