IDEAS home Printed from https://ideas.repec.org/a/taf/reroxx/v30y2017i1p1209-1223.html
   My bibliography  Save this article

Reimbursement and hospital competition in China

Author

Listed:
  • Chan Wang
  • You-hua Chen

Abstract

Quality and the costs of health care are of concern among patients. Differing from previous research into hospital competition, this article captures the impact of price subsidy of public hospitals on the quality of private hospitals, considering both horizontal and vertical product differentiation by employing a two-stage dynamic game under Cournot and Stackelberg competition. Firstly, the results of this study indicate that medical reimbursement of public hospitals has stimulating effects on the quality of private hospitals and the improvement of quality is related to the degree of hospital competition. Second, the quality of health care and patients’ surplus and social welfare are the highest under Stackelberg competition if the public hospital is the leader while the private hospital is the follower. Finally, the demand for health care rises with the price subsidy of public hospitals. These conclusions have significant policy implications for health care system reform, especially for China.

Suggested Citation

  • Chan Wang & You-hua Chen, 2017. "Reimbursement and hospital competition in China," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 30(1), pages 1209-1223, January.
    • Handle: RePEc:taf:reroxx:v:30:y:2017:i:1:p:1209-1223
    DOI: 10.1080/1331677X.2017.1340177
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1331677X.2017.1340177
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1331677X.2017.1340177?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    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:taf:reroxx:v:30:y:2017:i:1:p:1209-1223. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rero .

    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.