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Pricing hospital care: Global budgets and marginal pricing strategies

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  • Sutherland, Jason M.

Abstract

The Canadian province of British Columbia (BC) is adding financial incentives to increase the volume of surgeries provided by hospitals using a marginal pricing approach. The objective of this study is to calculate marginal costs of surgeries based on assumptions regarding hospitals’ availability of labor and equipment.

Suggested Citation

  • Sutherland, Jason M., 2015. "Pricing hospital care: Global budgets and marginal pricing strategies," Health Policy, Elsevier, vol. 119(8), pages 1111-1118.
    • Handle: RePEc:eee:hepoli:v:119:y:2015:i:8:p:1111-1118
    DOI: 10.1016/j.healthpol.2015.04.011
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    References listed on IDEAS

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    1. O'Reilly, Jacqueline & Busse, Reinhard & Häkkinen, Unto & Or, Zeynep & Street, Andrew & Wiley, Miriam, 2012. "Paying for hospital care: the experience with implementing activity-based funding in five European countries," Health Economics, Policy and Law, Cambridge University Press, vol. 7(1), pages 73-101, January.
    2. Malcomson, James M., 2007. "Hospital cost differences and payment by results," Health Economics, Policy and Law, Cambridge University Press, vol. 2(4), pages 429-433, October.
    3. Jason Sutherland & R. T. Crump & Nadya Repin & Erik Hellsten, 2013. "Paying for Hospital Services: A Hard Look at the Options," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 378, April.
    4. Jackson, Terri, 2001. "Using computerised patient-level costing data for setting DRG weights: the Victorian (Australia) cost weight studies," Health Policy, Elsevier, vol. 56(2), pages 149-163, May.
    5. Pope, Gregory C., 1990. "Using hospital-specific costs to improve the fairness of prospective reimbursement," Journal of Health Economics, Elsevier, vol. 9(3), pages 237-251, November.
    6. Ellis, Randall P. & McGuire, Thomas G., 1986. "Provider behavior under prospective reimbursement : Cost sharing and supply," Journal of Health Economics, Elsevier, vol. 5(2), pages 129-151, June.
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