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Policy Implications Of Transferring Patients To Private Practice

Author

Listed:
  • Paula González

    (Universidad de Alicante)

Abstract

We construct a model to analyze the willingness of Health Authorities to reach agreements with private hospitals to have some of their public sector patients treated there. When physicians are dual suppliers, we show that a problem of cream-skimming arises and reduces the incentives of the government to undertake such a policy. We argue that the more disperse the severities of the patients are, the greater the reduction in the incentives will be. Moreover, we characterize the distortion that the cream-skimming phenomenon imposes on the characteristics of the policy, when this is implemented.

Suggested Citation

  • Paula González, 2002. "Policy Implications Of Transferring Patients To Private Practice," Working Papers. Serie AD 2002-12, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:2002-12
    as

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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2002-12.pdf
    File Function: Fisrt version / Primera version, 2002
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    References listed on IDEAS

    as
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    2. Olivella, Pau, 2003. "Shifting public-health-sector waiting lists to the private sector," European Journal of Political Economy, Elsevier, vol. 19(1), pages 103-132, March.
    3. Hoel,M. & Soether,E.M., 2000. "Private health care as a supplement to a public health system with waiting time for treatment," Memorandum 41/2000, Oslo University, Department of Economics.
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    6. Ellis, Randall P., 1998. "Creaming, skimping and dumping: provider competition on the intensive and extensive margins1," Journal of Health Economics, Elsevier, vol. 17(5), pages 537-555, October.
    7. Ellis, Randall P. & McGuire, Thomas G., 1986. "Provider behavior under prospective reimbursement : Cost sharing and supply," Journal of Health Economics, Elsevier, vol. 5(2), pages 129-151, June.
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    Cited by:

    1. Paula González, 2004. "Should physicians' dual practice be limited? An incentive approach," Health Economics, John Wiley & Sons, Ltd., vol. 13(6), pages 505-524, June.
    2. Olivella, Pau, 2003. "Shifting public-health-sector waiting lists to the private sector," European Journal of Political Economy, Elsevier, vol. 19(1), pages 103-132, March.

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