Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/260334 
Year of Publication: 
2022
Series/Report no.: 
Working Paper No. 2021:14
Publisher: 
Lund University, School of Economics and Management, Department of Economics, Lund
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 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.
Subjects: 
health care services
public and private providers
multiple pricing
welfare
dumping
JEL: 
C61
D47
D78
I11
Document Type: 
Working Paper

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