Competition between General Practitioners and Specialists in the Primary Health Care Market
AbstractIn this paper, we study the optimal payment system for the primary health care market when general practitioners are not only in competition between themselves but also with specialists. We define the copayment to impose in order to ensure a good allocation of patients among the two types of physicians. Further, we set the physician reimbursement system that guarantees an appropriate referral of patients to specialists. We prove that the GP's remuneration system is more prospective the larger the competition with specialists. Next, we show that the assumption of risk-averse patients precludes the optimal payment system from being a first-best solution. To conclude, we contrast the results of the analysis with systems of gatekeepers where all patients are required to go to a general practitioner before having access to specialized medicine.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2001004.
Date of creation: 01 Jan 2001
Date of revision:
health care; competition; gatekeeping; payment system;
Find related papers by JEL classification:
- I10 - Health, Education, and Welfare - - Health - - - General
- D60 - Microeconomics - - Welfare Economics - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Begoña García Mariñoso & Izabela Jelovac, 2000. "GPs’ Payment Contracts and their Referral Policy," Documentos de trabajo - Analise Economica 0010, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anne DAVISTER-LOGIST).
If references are entirely missing, you can add them using this form.