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Supply-side risk adjustment and outlier payment policy

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Author Info
Mougeot, Michel
Naegelen, Florence

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Abstract

In most health care systems where a prospective payment system is implemented, an outlier payment is used to cover the hospitals' unusually high costs. When the hospital chooses its cost reduction effort before observing a patient's severity, we show that the best outlier payment is based on the realized cost when the hospital exerts the first best level of effort, for any level of severity.

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File URL: http://www.sciencedirect.com/science/article/B6V8K-4SM1T8R-1/2/a745bb8656ae8a33008a5f7dd3d5bc9b
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Publisher Info
Article provided by Elsevier in its journal Journal of Health Economics.

Volume (Year): 27 (2008)
Issue (Month): 5 (September)
Pages: 1196-1200
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:eee:jhecon:v:27:y:2008:i:5:p:1196-1200

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Web page: http://www.elsevier.com/locate/inca/505560

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This page was last updated on 2009-12-3.

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