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Selecting Negotiation Processes with Health Care Providers

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  • Pedro Pita Barros
  • Xavier Martínez-Giralt

Abstract

We address the question of how a third-party payer (e.g. an insurer) decides what providers to contract with. Two different mechanisms are studied and their properties compared. A first mechanism consists in the third party payer setting up a bargaining procedure with both providers. The second mechanism is the so-called "any willing provider" where the third-party payer announces a contract and every provider freely decides to sign it or not. The main finding is that the decision of the third-party payer depends on the surplus to be shared. When it is relatively high the third-party payer prefers the any willing provider system. When, on the contrary, the surplus is relatively low, the third-party payer will select a negotiated solution.

Suggested Citation

  • Pedro Pita Barros & Xavier Martínez-Giralt, 2015. "Selecting Negotiation Processes with Health Care Providers," Working Papers 30, Barcelona School of Economics.
    • Handle: RePEc:bge:wpaper:30
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    References listed on IDEAS

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    More about this item

    Keywords

    bargaining; health care provision; any willing provider;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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