Scandinavian Working Papers in Economics
Working Papers,
Lund University, Department of Economics
No 2021:14: Multiple Pricing for Health Care Services
Tommy Andersson (), Andreea Enache (), Albin Erlanson () and Prakriti Thami ()
Additional contact information
Tommy Andersson: Department of Economics, Lund University, Postal: School of Economics and Management, Box 7080, S-220 07 Lund, Sweden
Andreea Enache: Stockholm School of Economics
Albin Erlanson: University of Essex
Prakriti Thami: Department of Economics, Lund University, Postal: School of Economics and Management, Box 7080, S-220 07 Lund, Sweden
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.
Keywords: health care services; public and private providers; multiple pricing; welfare
19 pages, November 5, 2021
Full text files
wp21_14.pdfFull text
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