Selecting health care providers: "Any willing provider" vs. negotiation

Pedro Pita Barros, Xavier Martinez-Giralt

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

We study how a third-party payer decides what providers to contract with. Two mechanisms are studied and their properties compared. A first mechanism consists of the so-called "any willing provider" where the third-party payer announces a contract and every provider freely decides to sign it or not. The second mechanism is a bargaining procedure with the providers set up by the third-party payer. The main finding is that the decision of the third-party payer depends on the surplus to be shared. When it is relatively high (low) the third-party payer prefers the any willing provider system (negotiated solution). (C) 2007 Elsevier B.V. All rights reserved.
Original languageEnglish
Pages (from-to)402-414
JournalEuropean Journal Of Political Economy
Volume24
Issue number2
DOIs
Publication statusPublished - 1 Jan 2008

Keywords

  • bargaining
  • health care provision
  • any willing provider

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