IDEAS home Printed from https://ideas.repec.org/a/kap/pubcho/v114y2003i3-4p477-89.html
   My bibliography  Save this article

Bureaucracy Versus Markets in Hospital Care: The Dutch Case

Author

Listed:
  • Janssen, Richard T J M
  • Leers, Theo
  • Meijdam, Lex C.
  • Verbon, Harrie

Abstract

In this paper we analyze the bureaucratic negotiation process that is implied by the budgeting system applied in Dutch hospital care. This system is based on centralized price setting while simultaneously allowing for decentralized negotiations on volumes. We apply a variant of the bureaucracy theory, according to which the bureaucratic agency (in our case the joint hospitals) are not allowed to price discriminate, but will receive a flat price per unit of output. We find that central price setting, where the insurer cannot exploit its information on hospital costs, leads to a suboptimal supply of hospital care. Copyright 2003 by Kluwer Academic Publishers

Suggested Citation

  • Janssen, Richard T J M & Leers, Theo & Meijdam, Lex C. & Verbon, Harrie, 2003. "Bureaucracy Versus Markets in Hospital Care: The Dutch Case," Public Choice, Springer, vol. 114(3-4), pages 477-489, March.
    • Handle: RePEc:kap:pubcho:v:114:y:2003:i:3-4:p:477-89
    as

    Download full text from publisher

    File URL: http://journals.kluweronline.com/issn/0048-5829/contents
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Elton Beqiraj & Silvia Fedeli & Massimiliano Tancioni, 2019. "Bureaucratic Reshuffling and Efficiency: Do n-Competing Bureaus Determine Inefficient Results?," Mathematics, MDPI, vol. 7(10), pages 1-12, October.
    2. Silvia Fedeli & Leone Leonida & Michele Santoni, 2018. "Bureaucratic institutional design: the case of the Italian NHS," Public Choice, Springer, vol. 177(3), pages 265-285, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:114:y:2003:i:3-4:p:477-89. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.