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La integración vertical en el sistema de salud colombiano

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Author Info
Jairo Humberto Restrepo () (Universidad de Antioquia)
John Fernando Lopera () (Universidad de Antioquia)
Sandra Milena Rodríguez () (Universidad del Norte)
Abstract

Vertical integration in the health sector refers to the government structure designed to coordinate and control attention services in the different states of the value chain, and to facilitate the collaboration and communication between the suppliers. In Colombia, the vertical integration allows insurers (EPS) to provide health services directly through their own centers of attention (IPS). This situation has motivated the EPS to create their own IPS and other modalities of vertical integration or control. This article offers a model of double marginalization for only one EPS and one IPS, and concludes that when the insurance company practices vertical control toward the lender, the benefits are larger than in a scheme of independent firms; also, the final price of the integrated scheme is smaller.

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File URL: http://www.uexternado.edu.co/facecono/ecoinstitucional/workingpapers/jrestrepo17.pdf
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Publisher Info
Article provided by Universidad Externado de Colombia - Facultad de Economía in its journal Revista de Economía Institucional.

Volume (Year): 9 (2007)
Issue (Month): 17 (July-December)
Pages: 279-308
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:rei:ecoins:v:9:y:2007:i:17:p:279-308

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Related research
Keywords: health economics; industrial organization; vertical integration; health care insurance; profits; prices;

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Find related papers by JEL classification:
I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

References listed on IDEAS
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  1. Ciliberto, Federico & Dranove, David, 2006. "The effect of physician-hospital affiliations on hospital prices in California," Journal of Health Economics, Elsevier, vol. 25(1), pages 29-38, January. [Downloadable!] (restricted)
  2. Hart, Oliver & Moore, John, 1990. "Property Rights and the Nature of the Firm," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1119-58, December. [Downloadable!] (restricted)
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  3. Pauly, Mark V., 1987. "Monopsony power in health insurance: thinking straight while standing on your head," Journal of Health Economics, Elsevier, vol. 6(1), pages 73-81, March. [Downloadable!] (restricted)
  4. Cutler, David M. & Zeckhauser, Richard J., 2000. "The anatomy of health insurance," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 11, pages 563-643 Elsevier. [Downloadable!] (restricted)
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  5. George J. Stigler, 1951. "The Division of Labor is Limited by the Extent of the Market," Journal of Political Economy, University of Chicago Press, vol. 59, pages 185. [Downloadable!] (restricted)
  6. Gaynor, Martin, 2006. "Is vertical integration anticompetitive?: Definitely maybe (but that's not final)," Journal of Health Economics, Elsevier, vol. 25(1), pages 175-180, January. [Downloadable!] (restricted)
  7. Blois, K J, 1972. "Vertical Quasi-Integration," Journal of Industrial Economics, Blackwell Publishing, vol. 20(3), pages 253-72, July. [Downloadable!] (restricted)
  8. Grossman, Sanford J & Hart, Oliver D, 1986. "The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 691-719, August. [Downloadable!] (restricted)
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