Patient Mobility, Health Care Quality and Welfare
AbstractPatient mobility is a key issue in the EU who recently pased a new law on patients`right to EU-wide provider choice. In this paper we use a hotelling model with txo regions that differ in technology to study the impact of patient mobility leads to too low (higt) quality and two few (many) patients being treated in the high-skill (low-skill) region. A centralised solution with patient mobility implements the first best, but the low - skill region would not be willing to trnsfer authority as its welfare is lower than without mobility. In a decentralised solution, the effects of pacient mobility depend on the transfer payment. If the payment is below marginal cost, mobility leads to a "race-to-the-bottom" in quality and lower welfare in both regions. In the payment is equal to marginal cost, quality and welfare remain unchanged in the high-skill region, but the low-skill region benefits. For a socially optimal payment, wich is higher than marginal cost, quality levels in the two regions are closer to (but not at) the first best, but welfare is lower in the low-skill region. Thus, patient mobility can have adverse effects on quality provision and welfare unles an appropriate transfer payment scheme is implemented.
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Bibliographic InfoPaper provided by NIPE - Universidade do Minho in its series NIPE Working Papers with number 26/2011.
Date of creation: 2011
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Other versions of this item:
- Brekke, Kurt R. & Levaggi, Rosella & Siciliani, Luigi & Straume, Odd Rune, 2011. "Patient Mobility, Health Care Quality and Welfare," Discussion Paper Series in Economics 13/2011, Department of Economics, Norwegian School of Economics.
- Brekke, Kurt Richard & Levaggi, Rosella & Siciliani, Luigi & Straume, Odd Rune, 2011. "Patient Mobility, Health Care Quality and Welfare," CEPR Discussion Papers 8559, C.E.P.R. Discussion Papers.
- H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
- H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
- 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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