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The pricing of physicians' services with distant medicine and health insurance

Author

Listed:
  • Emilie Dargaud

    (Univ Lyon, Université Lumière Lyon 2, GATE, UMR 5824, F-69130 Ecully, France)

  • Izabela Jelovac

    (Univ Lyon, CNRS, GATE UMR 5824, F-69130 Ecully, France)

Abstract

Telemedicine is often put forward as a solution to medical deserts. Recently, telemedicine has allowed to limit physical contacts during a pandemic. We analyze within a theoretical model the setting of physicians' fees in the presence of distant medicine and public health insurance, as well as the resulting patients' surplus, access and public expenses. Concretely, we consider that distant medicine is provided either by the same physician as in-person medicine or by another one specialized in distant medicine. We compare the outcomes of these two market structures with each other and with a benchmark monopoly with no distant medicine. This comparison allows to discuss the effects of a recent French reform concerning insurance reimbursements for distant medicine, as well as those of cross-border high-quality remote health services.

Suggested Citation

  • Emilie Dargaud & Izabela Jelovac, 2022. "The pricing of physicians' services with distant medicine and health insurance," Working Papers 2214, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    • Handle: RePEc:gat:wpaper:2214
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    File URL: https://www.gate.cnrs.fr/RePEc/2022/2214.pdf
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    Keywords

    Distant medicine; pricing; insurance; medical deserts;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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