An Equilibrium Model of General Practitioner Payment Schemes
In an environment where GPs are of differing quality and heterogeneous patients have di?erent preferences for quality, it is shown that fee-for-service coupled with balance billing is a superior payment scheme to just fee-for-service or capitation payments as it generates an e?cient allocation of GPs between high and low quality and an e?cient allocation of patients between GPs. Where patients have more than one condition it is shown that fee-for-service allows patients to seek treatment from GPs of di?ering quality conditional on the medical condition they have.
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- Gravelle, Hugh & Masiero, Giuliano, 2000.
"Quality incentives in a regulated market with imperfect information and switching costs: capitation in general practice,"
Journal of Health Economics,
Elsevier, vol. 19(6), pages 1067-1088, November.
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- Elizabeth Savage & Glenn Jones, 2004. "An Analysis of the General Practice Access Scheme on GP Incomes, Bulk Billing and Consumer Copayments," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 37(1), pages 31-40, 03.
- Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, June.
- Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
- 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.
- 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.
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