Mougeot, Michel; Naegelen, Florence - In: Journal of Health Economics 27 (2008) 5, pp. 1196-1200
In most health care systems where a prospective payment system is implemented, an outlier payment is used to cover the hospitals' unusually high costs. When the hospital chooses its cost reduction effort before observing a patient's severity, we show that the best outlier payment is based on the...
