Physicians self selection of a payment mechanism: Capitation versus fee-for-service

Marie Allard, Izabela Jelovac and Pierre-Thomas Léger
Additional contact information
Marie Allard: HEC Montréal
Pierre-Thomas Léger: HEC Montréal, CIRANO, CIRPEE

No 1024, Working Papers from Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon

Abstract: The main question raised in this paper is whether GPs should self select their paymentmechanism or not. To answer it, we model GPs’ behavior under the most commonpayment schemes (capitation and fee-for-service) and when GPs can select one amongthose. Our analysis considers GPs heterogeneity in terms of both ability and sense ofprofessional duty. We conclude that when savings on specialists costs are the mainconcern of a regulator, GPs should be paid on a fee-for-service basis. Instead, whenfailures to identify severe conditions are the main concern, then payment self selection byGPs can be optimal.

Keywords: GPs; gatekeeping; payment scheme; self selection; ability; professional duty (search for similar items in EconPapers)
JEL-codes: I18 J33 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Working Paper: Physicians self selection of a payment mechanism: Capitation versus fee-for-service (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:gat:wpaper:1024

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