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Government purchasing of health services

In: Handbook of Health Economics

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  • Chalkley, Martin
  • Malcomson, James M.

Abstract

This chapter reviews the literature on payment schemes for government purchases of health services. It focuses on four themes: (1) the tension between obtaining appropriate quality of services and keeping the cost of those services at an acceptable level; (2) the role of cost sharing by the payer when there is asymmetric information between purchaser and supplier about costs or case-mix; (3) the importance of commitment in purchasing; and (4) the role of reputation in maintaining quality in long term relationships between purchasers and suppliers.

Suggested Citation

  • Chalkley, Martin & Malcomson, James M., 2000. "Government purchasing of health services," Handbook of Health Economics,in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 15, pages 847-890 Elsevier.
  • Handle: RePEc:eee:heachp:1-15
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    JEL classification:

    • I1 - Health, Education, and Welfare - - Health

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