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Patient Choice, Mobility and Competition Among Health Care Providers

In: Health Care Provision and Patient Mobility

Author

Listed:
  • Kurt R. Brekke

    (Norwegian School of Economics)

  • Hugh Gravelle

    (University of York)

  • Luigi Siciliani

    (University of York)

  • Odd Rune Straume

    (University of Minho
    University of Bergen)

Abstract

Policymakers are increasingly designing policies that encourage patient choice and therefore mobility across providers. Since prices are regulated (fixed) in most countries, providers need to compete on quality to attract patients. This chapter reviews the current theoretical and empirical literature on patient choice and quality competition in health markets. The theoretical literature identifies key factors affecting incentives to provide quality. These include: altruistic motives, cost structure, number of providers, demand responsiveness, GP gatekeeping, degree of specialization, profit constraints and soft budgets. We also review the theoretical literature on choice across different countries (e.g. within the EU) or regions within the same countries. The chapter reviews selected empirical studies that investigate whether demand responds to quality and waiting times, the role of patient’s mobility and the effect of competition on quality.

Suggested Citation

  • Kurt R. Brekke & Hugh Gravelle & Luigi Siciliani & Odd Rune Straume, 2014. "Patient Choice, Mobility and Competition Among Health Care Providers," Developments in Health Economics and Public Policy, in: Rosella Levaggi & Marcello Montefiori (ed.), Health Care Provision and Patient Mobility, edition 127, pages 1-26, Springer.
    • Handle: RePEc:spr:dehchp:978-88-470-5480-6_1
    DOI: 10.1007/978-88-470-5480-6_1
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    More about this item

    Keywords

    Choice; Quality competition;

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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