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Multiple Pricing for Health Care Services

Tommy Andersson, Andreea Enache (), Albin Erlanson and Prakriti Thami ()
Additional contact information
Andreea Enache: Stockholm School of Economics
Prakriti Thami: Department of Economics, Lund University, Postal: School of Economics and Management, Box 7080, S-220 07 Lund, Sweden

No 2021:14, Working Papers from Lund University, Department of Economics

Abstract: This paper provides a theoretical model that captures the essential features of a Swedish health care reform where private and public health care providers serve patients with certain functional impairments, but where only private providers can reject service requests from patients. Since the hourly price compensation is fixed, this type of systems is expected to result in a monetary deficit for public providers (since they can not reject proposals from “unprofitable” patients). This paper proposes a more advanced pricing system and characterizes its optimal solution. A numerical analysis demonstrates that the deficit for the public provider can be substantially reduced without affecting the total budget.

Keywords: health care services; public and private providers; multiple pricing; welfare (search for similar items in EconPapers)
JEL-codes: C61 D47 D78 I11 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2021-11-05
New Economics Papers: this item is included in nep-hea and nep-ias
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Handle: RePEc:hhs:lunewp:2021_014