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Using Fees to Reduce Bed-Blocking: A Game between Hospitals and Care Providers

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  • Snorre Kverndokk
  • Hans Olav Melberg

Abstract

The Coordination Reform was introduced in Norway in 2012 including a fee for bed-blocking in hospitals. To study this, we introduce a Stackelberg game where the hospital is the leader and the care institution is the follower. The reform does not necessarily lead to less bed-blocking as this depends on the relative strength of the players’ concern for income and patients’ health, and the optimal discharge date before the reform. Testing the results with data, we find a large negative effect on bed-blocking and discharge date. Thus, financial incentives may count more than health incentives, or health effects of bed-blocking are insignificant.

Suggested Citation

  • Snorre Kverndokk & Hans Olav Melberg, 2016. "Using Fees to Reduce Bed-Blocking: A Game between Hospitals and Care Providers," CESifo Working Paper Series 6146, CESifo.
    • Handle: RePEc:ces:ceswps:_6146
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    References listed on IDEAS

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    1. Styrborn, Karin & Thorslund, Mats, 1993. "`Bed-blockers': Delayed discharge of hospital patients in a nationwide perspective in Sweden," Health Policy, Elsevier, vol. 26(2), pages 155-170, December.
    2. Holmås, Tor Helge & Kjerstad, Egil & Lurås, Hilde & Straume, Odd Rune, 2010. "Does monetary punishment crowd out pro-social motivation? A natural experiment on hospital length of stay," Journal of Economic Behavior & Organization, Elsevier, vol. 75(2), pages 261-267, August.
    3. Julien Forder, 2009. "Long‐term care and hospital utilisation by older people: an analysis of substitution rates," Health Economics, John Wiley & Sons, Ltd., vol. 18(11), pages 1322-1338, November.
    4. Hagen, Terje P. & Ambugo, Eliva Atieno & Melberg, Hans Olav, 2016. "Liggetider og reinnleggelser i somatiske sykehus før og etter Samhandlingsreformen," HERO Online Working Paper Series 2016:5, University of Oslo, Health Economics Research Programme.
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    Cited by:

    1. Christian Kümpel, 2019. "Do financial incentives influence the hospitalization rate of nursing home residents? Evidence from Germany," Health Economics, John Wiley & Sons, Ltd., vol. 28(11), pages 1235-1247, November.

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    More about this item

    Keywords

    bed-blocking; care services; hospital services; health reform; Stackelberg game;
    All these keywords.

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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