Public and Private Provision of Health Care
One of the mechanisms that is implemented in the cost containment wave in the health-care sectors in western countries is the definition, by the third-party payer, of a set of preferred providers. The insured patients have different access rules to such providers when ill. The rules specify the co-payments patient must pay when using an out-of-plan care provider. We propose to study the competitive process among providers in terms of both prices and qualities. Competition is influenced by the status of providers as in-plan or out-of-plan care providers. Also, there is a moral hazard of provider choice related to the trade-off between freedom to choose and the need to hold down costs. Our main findings are that we can define a reimbursement scheme when decisions on prices and qualities are taken simultaneously (that we relate to primary health-care sectors) such that the first-best allocation is achieved. In contrast, some type of regulation is needed to achieve the optimal solution when decisions are sequential (specialized health-care sector). We also derive some normative conclusions on the way price controls should be implemented in some European Union Member States.
|Date of creation:||Jun 2000|
|Date of revision:|
|Contact details of provider:|| Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.|
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
|Order Information:|| Email: |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jacob Glazer & Thomas G. McGuire, 1990.
"Should Physicians Be Permitted to 'Balance Bill' Patients,"
0005, Boston University - Industry Studies Programme.
- Glazer, Jacob & Glazer, Jacob & McGuire, Thomas G., 1993. "Should physicians be permitted to 'balance bill' patients?," Journal of Health Economics, Elsevier, vol. 12(3), pages 239-258, October.
- Selden, Thomas M., 1997. "More on the economic efficiency of mixed public/private insurance," Journal of Public Economics, Elsevier, vol. 66(3), pages 517-523, December.
- Cremer, Helmuth & Marchand, Maurice & Thisse, Jacques-Francois, 1991.
"Mixed oligopoly with differentiated products,"
International Journal of Industrial Organization,
Elsevier, vol. 9(1), pages 43-53, March.
- repec:adr:anecst:y:1994:i:33:p:07 is not listed on IDEAS
- Asher Wolinsky, 1997.
"Regulation of Duopoly: Managed Competition vs Regulated Monopolies,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 6(4), pages 821-847, December.
- Asher Wolinsky, 1994. "Regulation of Duopoly: Managed Competition vs. Regulated Monopolies," Discussion Papers 1116, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Dixit, Avinash K, 1986. "Comparative Statics for Oligopoly," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 107-22, February.
- Xavier Martinez-Giralt & Pedro Pita Barros, 2000. "Selecting Negotiation Processes with Health Care," UFAE and IAE Working Papers 467.00, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Yeon-Koo Che & Ian Gale, 1997.
"Buyer Alliances and Managed Competition,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 6(1), pages 175-200, 03.
- Henriques, Irene, 1990. "Cooperative and Noncooperative R&D in Duopoly with Spillovers: Comment," American Economic Review, American Economic Association, vol. 80(3), pages 638-40, June.
- White, Mark D., 1996. "Mixed oligopoly, privatization and subsidization," Economics Letters, Elsevier, vol. 53(2), pages 189-195, November.
- Blomqvist, Ake & Johansson, Per-Olov, 1996.
"Economic Efficiency and Mixed Public/Private Insurance,"
SSE/EFI Working Paper Series in Economics and Finance
110, Stockholm School of Economics.
- Blomqvist, A. & Johansson, P-O., 1997. "Economic efficiency and mixed public/private insurance," Journal of Public Economics, Elsevier, vol. 66(3), pages 505-516, December.
- Blomqvist, Ake & Johansson, Per-Olov, 1997. "Rejoinder to T.M. Selden," Journal of Public Economics, Elsevier, vol. 66(3), pages 525-526, December.
- Lorenz NETT, 1993. "Mixed Oligopoly With Homogeneous Goods," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 64(3), pages 367-393, 07.
When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:2491. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.