This chapter reviews the literature on payment schemes for government purchases of health services. It focuses on four themes: (1) the tension between obtaining appropriate quality of services and keeping the cost of those services at an acceptable level; (2) the role of cost sharing by the payer when there is asymmetric information between purchaser and supplier about costs or case-mix; (3) the importance of commitment in purchasing; and (4) the role of reputation in maintaining quality in long term relationships between purchasers and suppliers.
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ReDIF This chapter was published in: A. J. Culyer & J. P. Newhouse (ed.) Handbook of Health Economics, , chapter 15, pages 847-890, 2000.
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This chapter was published in the following book, which is listed on IDEAS: A. J. Culyer & J. P. Newhouse (ed.), 2000.
"Handbook of Health Economics,"
Handbook of Health Economics,
Elsevier,
edition 1, volume 1, number 1.
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