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| Author: | Barros, P. P. Martinez-Giralt, X. |
| Title: | Public and Private Provision of Health Care |
| Journal: | Journal of Economics & Management Strategy
2002 : SPRING, VOL. 11:1, p. 109-134 |
| Index terms: | HEALTH HEALTH SERVICE ANALYTICAL REVIEW MANAGEMENT |
| Language: | eng |
| Abstract: | One of the mechanisms that are implemented in the cost containment movement in the health care sectors in western countries is the definition, by the third-party payer, of a set of preferred providers. The insured patients have different access rules to such providers when ill. The rules specify the copayments patients must pay when using an out-of-plan care provider. This paper studies the competitive process among providers in terms of both prices and qualities. Competition is influenced by the status of providers as in-plan or out-of- plan care providers. Also, there is a moral hazard of provider choice related to the trade-off between freedom to choose and the need to hold down costs. |
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