Choice of Contracts in the British National Health Service: An Empirical Study

Martin Chalkley and Duncan McVicar

No 216, Dundee Discussion Papers in Economics from Economic Studies, University of Dundee

Abstract: Following major reforms of the British National Health Service (NHS) in 1990, the roles of purchasing and providing health services were separated, with the relationship between purchasers and providers governed by contracts. Using a mixed multinomial logit analysis, we show how this policy shift led to a selection of contracts that is consistent with the predictions of a simple model, based on contract theory, in which the characteristics of the health services being purchased and of the contracting parties influence the choice of contract form. The paper thus provides evidence in support of the practical relevance of theory in understanding health care market reform.

Keywords: health services; British NHS; physician agency; financial incentives (search for similar items in EconPapers)
JEL-codes: I11 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2007-11
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Related works:
Journal Article: Choice of contracts in the British National Health Service: An empirical study (2008)
Working Paper: Choice of Contracts in the British National Health Service: An Empirical Study (2008)
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