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Multiple Pricing for Personal Assistance Services

Andersson, Tommy LU ; Ellegård, Lina Maria LU ; Enache, Andreea ; Erlanson, Albin and Thami, Prakriti LU (2022) In Working Papers
Abstract
This paper provides a general theoretical framework that captures the essential features of
a Swedish reform where private and public health care providers serve patients with certain
functional impairments. Because providers receive a fixed hourly compensation for their
services (identical across patient types) and only private providers can reject service requests
from patients, private providers avoid the costliest patients, resulting in a monetary deficit
for public providers. To partially overcome this problem, a multiple pricing (reimbursement)
scheme is proposed and its solution is characterized. The results suggest that there are some
fundamental trade-offs, e.g., between the goals of containing costs... (More)
This paper provides a general theoretical framework that captures the essential features of
a Swedish reform where private and public health care providers serve patients with certain
functional impairments. Because providers receive a fixed hourly compensation for their
services (identical across patient types) and only private providers can reject service requests
from patients, private providers avoid the costliest patients, resulting in a monetary deficit
for public providers. To partially overcome this problem, a multiple pricing (reimbursement)
scheme is proposed and its solution is characterized. The results suggest that there are some
fundamental trade-offs, e.g., between the goals of containing costs and restricting choices
for patients, but that the suggested pricing scheme may substantially reduce the deficits for
public providers without affecting the total budget set by the central government. (Less)
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, dumping, C61, D47, D78, I11
in
Working Papers
issue
2021:14
language
English
LU publication?
yes
id
cb8e861f-5c7a-4dd1-92b7-78ef994f99ff
date added to LUP
2022-11-06 14:33:26
date last changed
2024-05-06 15:44:15
@misc{cb8e861f-5c7a-4dd1-92b7-78ef994f99ff,
  abstract     = {{This paper provides a general theoretical framework that captures the essential features of<br/>a Swedish reform where private and public health care providers serve patients with certain<br/>functional impairments. Because providers receive a fixed hourly compensation for their<br/>services (identical across patient types) and only private providers can reject service requests<br/>from patients, private providers avoid the costliest patients, resulting in a monetary deficit<br/>for public providers. To partially overcome this problem, a multiple pricing (reimbursement)<br/>scheme is proposed and its solution is characterized. The results suggest that there are some<br/>fundamental trade-offs, e.g., between the goals of containing costs and restricting choices<br/>for patients, but that the suggested pricing scheme may substantially reduce the deficits for<br/>public providers without affecting the total budget set by the central government.}},
  author       = {{Andersson, Tommy and Ellegård, Lina Maria and Enache, Andreea and Erlanson, Albin and Thami, Prakriti}},
  keywords     = {{health care services; public and private providers; multiple pricing; welfare; dumping; C61; D47; D78; I11}},
  language     = {{eng}},
  note         = {{Working Paper}},
  number       = {{2021:14}},
  series       = {{Working Papers}},
  title        = {{Multiple Pricing for Personal Assistance Services}},
  url          = {{https://lup.lub.lu.se/search/files/182837996/WP21_14.pdf}},
  year         = {{2022}},
}