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Are incentives everything? payment mechanisms for health care providers in developing countries

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  • Gauri, Varun

Abstract

This paper assesses the extent to which provider payment mechanisms can help developing countries address their leading health care problems. It first identifies four key problems in the health care systems in developing countries: 1) public facilities, which provide the bulk of secondary and tertiary health care services in most countries, offer services of poor quality; 2) providers cannot be enticed to rural and urban marginal areas, leaving large segments of the population without adequate access to health care; 3) the composition of health services offered and consumed is sub-optimal; and 4) coordination in the delivery of care, including referrals, second opinions, and teamwork, is inadequate. The paper examines each problem in turn and assesses the extent to which changes in provider payments might address it.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2624.

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Date of creation: 22 Jun 2001
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Handle: RePEc:wbk:wbrwps:2624

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Keywords: Health Economics&Finance; Health Systems Development&Reform; Public Health Promotion; Health Monitoring&Evaluation; Early Child and Children's Health; Health Monitoring&Evaluation; HealthEconomics&Finance; Health Systems Development&Reform; Environmental Economics&Policies; Housing&Human Habitats;

References

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  1. Le Grand, Julian, 1991. "Quasi-markets and Social Policy," Economic Journal, Royal Economic Society, vol. 101(408), pages 1256-67, September.
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  3. Frank A. Sloan & Gabriel A. Picone & Donald H. Taylor, Jr. & Shin-Yi Chou, 1999. "Does Where You Are Admitted Make a Difference? An Analysis of Medicare Data," NBER Chapters, in: Frontiers in Health Policy Research, volume 2, pages 1-26 National Bureau of Economic Research, Inc.
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  14. Gruber, Jon & Kim, John & Mayzlin, Dina, 1999. "Physician fees and procedure intensity: the case of cesarean delivery," Journal of Health Economics, Elsevier, vol. 18(4), pages 473-490, August.
  15. Chevalier, Judith & Ellison, Glenn, 1997. "Risk Taking by Mutual Funds as a Response to Incentives," Journal of Political Economy, University of Chicago Press, vol. 105(6), pages 1167-1200, December.
  16. Drago, Robert & Garvey, Gerald T, 1998. "Incentives for Helping on the Job: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 1-25, January.
  17. Chalkley, M. & Malcomson, J.M., 1995. "Contracting for health services with unmonitored quality," Discussion Paper Series In Economics And Econometrics 9510, Economics Division, School of Social Sciences, University of Southampton.
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Citations

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Cited by:
  1. Bryant, John & Prohmmo, Aree, 2005. "Payment mechanisms and prescriptions in four Thai hospitals," Health Policy, Elsevier, vol. 73(2), pages 160-171, August.
  2. Khaleghian, Peyvand & Das Gupta Monica, 2004. "Public management and essential public health functions," Policy Research Working Paper Series 3220, The World Bank.
  3. Khaleghian, Peyvand & Gupta, Monica Das, 2005. "Public management and the essential public health functions," World Development, Elsevier, vol. 33(7), pages 1083-1099, July.

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