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Contracting for Health Services When Patient Demand Does Not Reflect Quality.

Abstract:

This paper analyzes contracts to keep down costs while maintaining quality of health services when patient demand does not reflect quality. There is then a natural role for forms of contract that have emerged during the reforms of the NHS in Britain that differ from pure fixed price or cost reimbursement contracts. The optimal form depends on whether the provider is entirely self-interested or benevolent in having genuine concern for patient welfare. With fully benevolent providers, there are...

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Authors


Martin Chalkley More by this author
James M Malcomson More by this author
Journal:
Journal of health economics
Volume:
17
Publication date:
1998
URN:
uuid:d7ff7282-4718-466d-965d-98ed8e664e35
Local pid:
oai:economics.ouls.ox.ac.uk:10983
Language:
English

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