Coordination between public and private health care providers in a dual-vaccine market

To ensure vaccine availability and adequate staffing for rapid vaccination during outbreaks, collaboration between public and private health care providers is essential, particularly under limited public service capacity. Rapid advancements in vaccine technology and viral mutations have resulted in multiple vaccines with varying efficacy for the same disease. This diversity complicates market decision-making for both providers and policymakers. Although prior studies have focused on supply chain coordination in single-vaccine markets, research on supply chains involving two vaccine types remains limited. This study investigates collaboration between a public provider (e.g., public hospital) and a private provider (e.g., private clinic) in a dual-vaccine market, considering two vaccination systems—allocation and subsidy—which have been implemented in regions such as Hong Kong. We derive equilibrium solutions for both systems and propose management strategies regarding system selection under different scenarios. Our analysis demonstrates that in a dual-vaccine market, the substitution effect of a lower-efficacy vaccine for a higher-efficacy vaccine decreases as the price of the higher-efficacy vaccine increases; this finding is critical for pricing strategies. Moreover, both vaccination systems effectively reduce infections, and improvements in service quality and a higher proportion of priority groups further enhance disease control. Under certain conditions, the allocation vaccination system generates mutual benefits, increasing both private sector profits and public vaccination coverage, indicating strong private-sector incentives to participate in allocation schemes. Finally, we propose policy recommendations for implementing vaccination programs. These findings provide valuable insights for health care managers to make informed decisions about vaccination strategies, pricing, and procurement.