Miraldo, Marisa; Siciliani, Luigi; Street, Andrew - Centre for Health Economics, Department of Economics … - 2008
Prospective payment systems are currently used in many OECD countries, where hospitals are paid a fixed price for each … patient treated. We develop a theoretical model to analyse the properties of the optimal fixed prices to be paid to hospitals … decreasing and the cost function is the (commonly used) power function, the optimal price adjustment for hospitals with higher …