Growth and welfare in mixed health system financing with physician dual practice in a developing economy: a case of Indonesia
Barış Alpaslan (),
King Yoong Lim () and
Yan Song ()
Additional contact information
Barış Alpaslan: Social Sciences University of Ankara
Yan Song: Nanjing Audit University
International Journal of Health Economics and Management, 2021, vol. 21, issue 1, No 3, 80 pages
Abstract Based on Indonesia’s hybrid BPJS Kesehatan health system, we analyze for welfare-optimal government financing strategy in an economy with a mixed health system using an endogenous growth framework with physician dual practice. We find the model solution to produce two vastly different regimes in terms of policy implications: a “high” public-sector congestion regime as in the benchmark case of Indonesia, and a “low” public-sector congestion, high capacity regime. In the former, welfare-optimal health financing strategy appears to be promoting private health service. In contrast, in the low-congestion, high capacity regime, a welfare-optimal strategy is to do the opposite of increasing government physician wage at the expense of private health subsidy. These results highlight the importance of developing a benchmarking system that measures the actual degree of congestion faced by the public health service in a developing economy, as it ultimately would influence the optimal health financing strategy to be pursued.
Keywords: Dual practice; Economic growth; Health care financing; Welfare (search for similar items in EconPapers)
JEL-codes: H51 I11 I15 O41 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s10754-020-09289-9 Abstract (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:ijhcfe:v:21:y:2021:i:1:d:10.1007_s10754-020-09289-9
Ordering information: This journal article can be ordered from
http://www.springer. ... th/journal/10754/PS2
Access Statistics for this article
International Journal of Health Economics and Management is currently edited by Leemore Dafny, Robert Town, Mark Pauly, David Dranove and Pedro Pita Barros
More articles in International Journal of Health Economics and Management from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().