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Explaining regional variation in home care use by demand and supply variables

Olivier van Noort, Fredo Schotanus, Joris van de Klundert and Jan Telgen

Health Policy, 2018, vol. 122, issue 2, 140-146

Abstract: In the Netherlands, home care services like district nursing and personal assistance are provided by private service provider organizations and covered by private health insurance companies which bear legal responsibility for purchasing these services. To improve value for money, their procurement increasingly replaces fee-for-service payments with population based budgets. Setting appropriate population budgets requires adaptation to the legitimate needs of the population, whereas historical costs are likely to be influenced by supply factors as well, not all of which are necessarily legitimate. Our purpose is to explain home care costs in terms of demand and supply factors. This allows for adjusting historical cost patterns when setting population based budgets.

Keywords: Home care; Utilization; Population based budget; Risk adjustment; Supplier Induced Demand (SID) (search for similar items in EconPapers)
Date: 2018
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