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Hospital Financing and the Development and Adoption of New Technologies

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  • Marisa Miraldo

    (Centre for Health Economics, University of York)

Abstract

We study the influence of different reimbursement systems, namely Prospective Payment System, Cost Based Reimbursement System and Mixed Reimbursement System on the development and adoption of different technologies with an endogenous supply of these technologies. We focus our analysis on technology development and adoption under two models: private R&D and R&D within the hospital. One of the major findings is that the optimal reimbursement system is a pure Prospective Payment System or a Mixed Reimbursement System depending on the market structure.

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File URL: http://www.york.ac.uk/media/che/documents/papers/researchpapers/rp26_hospital_financing_and_new_technologies.pdf
File Function: First version, 2007
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Bibliographic Info

Paper provided by Centre for Health Economics, University of York in its series Working Papers with number 026cherp.

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Length: 40 pages
Date of creation: Apr 2007
Date of revision:
Handle: RePEc:chy:respap:26cherp

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Keywords: Prospective Payment System; Cost Based Reimbursement; R&D;

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References

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  1. David M. Cutler & Mark McClellan, 1996. "The Determinants of Technological Change in Heart Attack Treatment," NBER Working Papers 5751, National Bureau of Economic Research, Inc.
  2. David M. Cutler & Mark McClellan & Joseph P. Newhouse, 1998. "Prices and Productivity in Managed Care Insurance," NBER Working Papers 6677, National Bureau of Economic Research, Inc.
  3. Romeo, Anthony A. & Wagner, Judith L. & Lee, Robert H., 1984. "Prospective reimbursement and the diffusion of new technologies in hospitals," Journal of Health Economics, Elsevier, vol. 3(1), pages 1-24, April.
  4. Joseph P. Newhouse, 1992. "Medical Care Costs: How Much Welfare Loss?," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 3-21, Summer.
  5. David M. Cutler & Mark McClellan & Joseph P. Newhouse & Dahlia Remler, 1996. "Are Medical Prices Declining?," NBER Working Papers 5750, National Bureau of Economic Research, Inc.
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Cited by:
  1. Seungchul Lee & Robert Rosenman, 2013. "Reimbursement and Investment: Prospective Payment and For-Profit Hospitals’ Market Share," Journal of Industry, Competition and Trade, Springer, vol. 13(4), pages 503-518, December.
  2. Finocchiaro Castro, Massimo & Guccio, Calogero & Pignataro, Giacomo & Rizzo, Ilde, 2014. "The effects of reimbursement mechanisms on medical technology diffusion in the hospital sector in the Italian NHS," Health Policy, Elsevier, vol. 115(2), pages 215-229.
  3. Barros, Pedro Pita & Martinez-Giralt, Xavier, 2010. "Technological adoption in health care," FEUNL Working Paper Series wp545, Universidade Nova de Lisboa, Faculdade de Economia.

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