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Portrait of Tommy Andersson. Photo.

Tommy Andersson

Professor

Portrait of Tommy Andersson. Photo.

Multiple Pricing for Health Care Services

Author

  • Tommy Andersson
  • Andreea Enache
  • Albin Erlanson
  • Prakriti Thami

Summary, in English

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.

Department/s

  • Department of Economics

Publishing year

2021

Language

English

Publication/Series

Working Papers

Issue

2021:14

Document type

Working paper

Topic

  • Economics

Keywords

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

Status

Published