Network Incentives in Managed Health Care
This paper introduces a theory of network incentives in managed health care. Participation in the plan's "network" confers an economic benefit on providers; in example, the plan expects compliance with its protocols. The network sets a target for the number of outpatient visits in an episode of care. A provider failing to satisfy the target may be penalized by the paln's attempt to direct patients to other providers within its network. There is an equilibrium in which every provider in the networlk uses the target.
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|Date of creation:||Oct 1998|
|Date of revision:|
|Contact details of provider:|| Postal: Boston University, Industry Studies Program; Department of Economics, 270 Bay Road, Boston, Massachusetts 02215.|
Web page: http://www.bu.edu/econ/isp/
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