Physicians self selection of a payment mechanism: Capitation versus fee-for-service
Abstract
The main question raised in this paper is whether GPs should self select their paymentmechanism or not. To answer it, we model GPs' behavior under the most commonpayment schemes (capitation and fee-for-service) and when GPs can select one amongthose. Our analysis considers GPs heterogeneity in terms of both ability and sense ofprofessional duty. We conclude that when savings on specialists costs are the mainconcern of a regulator, GPs should be paid on a fee-for-service basis. Instead, whenfailures to identify severe conditions are the main concern, then payment self selection byGPs can be optimal.Download Info
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Paper provided by HAL in its series Post-Print with number halshs-00523370.Length:
Date of creation: 2010
Date of revision:
Handle: RePEc:hal:journl:halshs-00523370
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00523370/en/
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Related research
Keywords: GPs; gatekeeping; payment scheme; self selection; ability; professional duty;Other versions of this item:
- Marie Allard & Izabela Jelovac & Pierre-Thomas Léger, 2010. "Physicians self selection of a payment mechanism: Capitation versus fee-for-service," Working Papers 1024, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-16 (All new papers)
- NEP-CTA-2010-10-16 (Contract Theory & Applications)
- NEP-HEA-2010-10-16 (Health Economics)
References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Allard, Marie & Jelovac, Izabela & Léger, Pierre Thomas, 2011.
"Treatment and referral decisions under different physician payment mechanisms,"
Journal of Health Economics,
Elsevier, vol. 30(5), pages 880-893.
- Marie Allard & Izabela Jelovac & Pierre-Thomas Léger, 2011. "Treatment and referral decisions under different physician payment mechanisms," Post-Print halshs-00650933, HAL.
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