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Author:Ma, C.
Title:Health care payment systems: cost and quality incentives
Journal:Journal of Economics & Management Strategy
1994 : SPRING, VOL. 3:1, p. 93-112
Index terms:MEDICAL CARE
PAYMENT SYSTEMS
INCENTIVES
Language:eng
Abstract:This paper compares the cost and quality incentive effects of cost reimbursement and prospective payment systems in the health industry. When a provider cannot refuse patients who require high treatment costs or discriminate patients by qualities, optimally designed prospective payments can implement the efficient quality and cost reduction efforts, but cost reimbursement cannot induce any cost incentive.
SCIMA record nr: 126882
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