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Multiple Pricing for Health Care Services

Andersson, Tommy LU ; Enache, Andreea ; Erlanson, Albin and Thami, Prakriti LU (2021) In Working Papers
Abstract
This paper provides a theoretical model that captures the essential features of a Swedish health care reform where private and public health care providers serve patients with certain functional impairments, but where only private providers can reject service requests from patients. Since the hourly price compensation is fixed, this type of systems is expected to result in a monetary deficit for public providers (since they can not reject proposals from “unprofitable” patients). This paper proposes a more advanced pricing system and characterizes its optimal solution. A numerical analysis demonstrates that the deficit for the public provider can be substantially reduced without affecting the total budget.
Please use this url to cite or link to this publication:
author
; ; and
organization
publishing date
type
Working paper/Preprint
publication status
published
subject
keywords
health care services, public and private providers, multiple pricing, welfare, C61, D47, D78, I11
in
Working Papers
issue
2021:14
pages
19 pages
language
English
LU publication?
yes
id
435d4c95-8bb8-4082-a3dd-565a9c350622
alternative location
https://swopec.hhs.se/lunewp/abs/lunewp2021_014.htm
date added to LUP
2021-11-16 14:35:05
date last changed
2021-11-16 14:35:05
@misc{435d4c95-8bb8-4082-a3dd-565a9c350622,
  abstract     = {{This paper provides a theoretical model that captures the essential features of a Swedish health care reform where private and public health care providers serve patients with certain functional impairments, but where only private providers can reject service requests from patients. Since the hourly price compensation is fixed, this type of systems is expected to result in a monetary deficit for public providers (since they can not reject proposals from “unprofitable” patients). This paper proposes a more advanced pricing system and characterizes its optimal solution. A numerical analysis demonstrates that the deficit for the public provider can be substantially reduced without affecting the total budget.}},
  author       = {{Andersson, Tommy and Enache, Andreea and Erlanson, Albin and Thami, Prakriti}},
  keywords     = {{health care services; public and private providers; multiple pricing; welfare; C61; D47; D78; I11}},
  language     = {{eng}},
  note         = {{Working Paper}},
  number       = {{2021:14}},
  series       = {{Working Papers}},
  title        = {{Multiple Pricing for Health Care Services}},
  url          = {{https://swopec.hhs.se/lunewp/abs/lunewp2021_014.htm}},
  year         = {{2021}},
}