Bargaining and idle public sector capacity in health care
AbstractA feature present in countries with a National Health Service is the co-existence of a public and a private sector. Often, the public payer contracts with private providers while holding idle capacity. This is often seen as inefficiency from the management of public facilities. We present here a different rationale for the existence of such idle capacity: the public sector may opt to have idle capacity as a way to gain bargaining power vis-à-vis the private provider, under the assumption of a more efficient private than the public sector.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 9 (2005)
Issue (Month): 5 ()
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Other versions of this item:
- Pedro Pita Barros & Xavier Martinez-Giralt, 2005. "Bargaining and idle public sector capacity in health care," Working Papers 170, Barcelona Graduate School of Economics.
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