Multiple Pricing for Health Care Services

Tommy Andersson, Andreea Enache, Albin Erlanson, Prakriti Thami

Research output: Working paper/PreprintWorking paper

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.
Original languageEnglish
Number of pages19
Publication statusPublished - 2021

Publication series

NameWorking Papers
PublisherLund University, Department of Economics
No.2021:14

Subject classification (UKÄ)

  • Economics

Keywords

  • health care services
  • public and private providers
  • multiple pricing
  • welfare
  • C61
  • D47
  • D78
  • I11

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