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Optimal Sharing Of Surgical Costs In The Presence Of Queues

  • Carmen Herrero Blanco

    (Instituto Valenciano de Investigaciones Económicas)

  • Paula González

    (Universidad de Alicante)

We deal with a cost allocation problem arising from sharing a medical service in the presence of queues. We use a standard queuing theory model in a context with several medical procedures, a certain demand of treatment and a maximum average waiting time guarantee set by the government. We show that sharing the use of an operating theatre to treat the patients of the different procedures, leads to a cost reduction. Then, we compute an optimal fee per procedure for the use of the operating theatre, based on the Shapley value. Afterwards, considering the post-operative time, we characterize the conditions under which this cooperation among treatments has a positive impact on the average post-operative costs. Finally, we provide a numerical example constructed on the basis of real data, to highlight the main features of our model.

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File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2001-27.pdf
File Function: Fisrt version / Primera version, 2001
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Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2001-27.

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Length: 25 pages
Date of creation: Oct 2001
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:2001-27
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  1. S. H. Tijs & T. S. H. Driessen, 1986. "Game Theory and Cost Allocation Problems," Management Science, INFORMS, vol. 32(8), pages 1015-1028, August.
  2. S.C. Littlechild & G.F. Thompson, 1977. "Aircraft Landing Fees: A Game Theory Approach," Bell Journal of Economics, The RAND Corporation, vol. 8(1), pages 186-204, Spring.
  3. Young, H.P., 1994. "Cost allocation," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 2, chapter 34, pages 1193-1235 Elsevier.
  4. Johannesson, Magnus & Johansson, Per-Olov & Söderqvist, Tore, 1997. "Time Spent on Waiting Lists for Medical Care: An Insurance Approach," SSE/EFI Working Paper Series in Economics and Finance 192, Stockholm School of Economics.
  5. Tijs, S.H. & Driessen, T.S.H., 1986. "Game theory and cost allocation problems," Other publications TiSEM 376c24c5-c95d-4d29-96b6-4, Tilburg University, School of Economics and Management.
  6. Besley, Timothy & Hall, John & Preston, Ian, 1999. "The demand for private health insurance: do waiting lists matter?," Journal of Public Economics, Elsevier, vol. 72(2), pages 155-181, May.
  7. S. C. Littlechild & G. Owen, 1973. "A Simple Expression for the Shapley Value in a Special Case," Management Science, INFORMS, vol. 20(3), pages 370-372, November.
  8. Hanning, Marianne & Spangberg, Ulrika Winblad, 2000. "Maximum waiting time -- a threat to clinical freedom?: Implementation of a policy to reduce waiting times," Health Policy, Elsevier, vol. 52(1), pages 15-32, May.
  9. Iversen, Tor, 1993. "A theory of hospital waiting lists," Journal of Health Economics, Elsevier, vol. 12(1), pages 55-71, April.
  10. repec:ner:tilbur:urn:nbn:nl:ui:12-154261 is not listed on IDEAS
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