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

JEL-codes: C61; D47; D78; I11

19 pages, November 5, 2021

Full text files

wp21_14.pdf PDF-file Full text

Download statistics

Questions (including download problems) about the papers in this series should be directed to Prakriti Thami ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2021-12-07 07:46:09.