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We present a model of optimal contracting between a purchaser and a provider of health services when quality has two dimensions. We assume that one dimension of quality is verifiable (dimension 1) and one dimension is not verifiable (dimension 2). We show that the power of the incentive scheme...
Persistent link: https://www.econbiz.de/10005791404
separating equilibrium can emerge, depending on the degree of altruism, characterised as very low, low, high and very high. i …) For very low altruism the quantity of the efficient and inefficient types is distorted upwards and downwards respectively …; the efficient type makes a positive profit. ii) For low altruism the quantity of the efficient and inefficient types is …
Persistent link: https://www.econbiz.de/10005661600
We study optimal risk adjustment in imperfectly competitive health insurance markets when high-risk consumers are less likely to switch insurer than low-risk consumers. First, we find that insurers still have an incentive to select even if risk adjustment perfectly corrects for cost differences...
Persistent link: https://www.econbiz.de/10009144733
Patient mobility is a key issue in the EU who recently passed a new law on patients' right to EU-wide provider choice. In this paper we use a Hotelling model with two regions that differ in technology to study the impact of patient mobility on health care quality, health care financing and...
Persistent link: https://www.econbiz.de/10009293984
Under Medicare Part D, senior citizens choose prescription drug insurance offred by numerous private insurers. We examine non-poor enrollees' actions in 2006 and 2007 using panel data. Our sample reduced overspending by $298 on average, with gains by 81% of them. The greatest improvements were...
Persistent link: https://www.econbiz.de/10009322981
Pricing policy for any experience good faces a key tradeoff. On one hand, a price reduction increases immediate demand and hence more people learn about the product. On the other hand, lower prices may serve as price anchors and, through a comparison effect, decrease subsequent demand. This...
Persistent link: https://www.econbiz.de/10011083717
The impacts of choice in public services are controversial. We exploit a reform in the English National Health Service to assess the impact of relaxing constraints on patient choice. We estimate a demand model to evaluate whether increased choice increased demand elasticity faced by hospitals...
Persistent link: https://www.econbiz.de/10011083844
Cross-country variability in regulatory frameworks, industrial policy, physician/pharmacy autonomy, brand/generic distinctions, and in the practice of medicine contributes to ambiguous interpretations of pharmaceutical cost comparisons. Here we report cross-country comparisons that: (i) focus on...
Persistent link: https://www.econbiz.de/10011083891
The literature on mergers between private hospitals suggests that such mergers often produce little benefit. Despite this, the UK government has pursued an active policy of hospital mergers, arguing that such consolidations will bring improvements for patients. We examine whether this promise is...
Persistent link: https://www.econbiz.de/10011083932
health gains, providers’ altruism and the opportunity cost of public funds. We derive optimal prices for processes … optimal, relied on an implausibly high level of altruism, or implied a lower social value of health gains than previously used. …
Persistent link: https://www.econbiz.de/10011084045