Selecting health care providers: "Any willing provider" vs. negotiation

Pedro Barros and Xavier Martinez-Giralt

European Journal of Political Economy, 2008, vol. 24, issue 2, 402-414

Abstract: We study how a third-party payer decides what providers to contract with. Two mechanisms are studied and their properties compared. A first mechanism consists of the so-called "any willing provider" where the third-party payer announces a contract and every provider freely decides to sign it or not. The second mechanism is a bargaining procedure with the providers set up by the third-party payer. The main finding is that the decision of the third-party payer depends on the surplus to be shared. When it is relatively high (low) the third-party payer prefers the any willing provider system (negotiated solution).

Date: 2008
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