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| Author: | Encinosa III, W. E. Sappington, D. E. M. |
| Title: | Competition among health maintenance organizations |
| Journal: | Journal of Economics & Management Strategy
1997 : SPRING, VOL. 6:1, p. 129-150 |
| Index terms: | HEALTH SERVICE ORGANIZATIONS COMPETITION |
| Language: | eng |
| Abstract: | A model of competition among health maintenance organizations is developed in this study, to analyse the effects of market power, scale economies and asymmetric knowledge of health risk on market outcomes. It was found that competition among health maintenance organizations may, but need not, ensure socially preferred outcomes. Market power or scale economies can sometimes admit socially preferred outcomes when they would not otherwise arise. Asymmetric knowledge of health risk may or may not be constraining. when it is constraining, a variety of patterns of incomplete health insurance can arise along with exessive or insufficient treatment and preventive care for either high-risk or low-risk individuals. |
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