Lu, Mingshan; Ma, Ching-to Albert; Yuan, Lasheng - In: Health Economics 12 (2003) 5, pp. 339-354
This paper examines selection and matching incentives of performance-based contracting (PBC) in a model of patient heterogeneity, provider horizontal differentiation and asymmetric information. Treatment effectiveness is affected by the match between a patient's illness severity and a provider's...