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Hospital’s activity-based financing system and manager: physician interaction

  • David Crainich

    ()

  • Hervé Leleu

    ()

  • Ana Mauleon

    ()

Hospital financing systems determine ma jor decisions made by physicians and managers within hospitals. This paper examines the impact of the transition toward an activity-based reimburse- ment system that has emerged in most OCDE countries. We consider two initial situations, one for a private for-profit sector where both hospitals and physicians are paid on a fee-for-service basis and the other for a public sector under prospective budget and salaried physicians. For the private sector, our model focuses on the type of interaction (simultaneous, sequential or joint decision-making games) that should emerge between agents after the introduction of the activity-based financing system. In the public sector, the elasticity of the demand to the level of inputs seems to play a more crucial role in the transition.

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File URL: http://hdl.handle.net/10.1007/s10198-010-0255-1
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Article provided by Springer in its journal The European Journal of Health Economics.

Volume (Year): 12 (2011)
Issue (Month): 5 (October)
Pages: 417-427

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Handle: RePEc:spr:eujhec:v:12:y:2011:i:5:p:417-427
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