Skip to main content

ETHNOS_APP

Home • Search • Journals • List 0

Contracting for Health Services with Unmonitored Quality

Bibliographic Data

ID9718834
AuthorsMartin Chalkley (0000-0002-1091-8259, University of Southampton), James M Malcomson (University of Southampton)
Year1998
Volume108
Issue449
Pages1093-1110
Publication date1998-07-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1111/1468-0297.00331
OpenAlexW2151803228
LanguageEN
Citations received5
References cited2

In both the NHS and Medicare, recent emphasis has been on contracts with payment based only on the ntumber of patients treated. It is shown that, withouit direct monitoring of quality or effort to reduce costs, stuch contracts are efficient only when it is efficient to treat all patients wanting treatment. It may not be when treatment costs are insured or stibsidised. Such contracts can then be improved by incltuding payments for the number of patients wanting treatment, as well as for the number actually treated. Even then, the otutcome will not generally be efficient if quality is multi-dimensional. In purchasing health services, government agencies, insurers and health maintenance organisations (HMOs) want to keep costs down without inducing providers of services to skimp on quality. By quality, we mean any aspect of service that benefits patients, whether during the process of treatment or in the health outcome after treatment. Typically, neither the provider's effort to reduce costs, nor the quality of service, is easily described in a way that makes specification in a contract straightforward, so the provider must be induced to supply both effort and quality. Contracting is thus what Holmstrom and Milgrom (1991) term a multitask agency problem. In both the British National Health Service (NHS) and US Medicare, recent emphasis has been on using contracts with payment based only on the number of patients treated (price-quantity schedules) for each specified medical condition and not on such additional information as the actual cost of treatment. Under Medicare, payment is (with certain exceptions) a fixed price per patient in each diagnosis related group (DRG). In the NHS, purchasers are encouraged to use fixed price contracts (known as cost per case contracts) or contracts with payment a non-linear function of the number of patients treated (cost and volume or sophisticated block contracts). National Audit Office (1995) summarises

Business · Quality (philosophy · Health Systems, Economic Evaluations, Quality of Life · Healthcare Policy and Management · Pharmaceutical Economics and Policy · Philosophy

  • The 2021 proposal to increase market forces in the Australian residential aged-care sector

    Open Access•Hugh Cutler, Yuanyuan Gu et al.•Health Policy•2023

  • Analyse empirique des effets des réseaux de télémédecine sur les transferts de patients à l'aide d'un système panel avec auto-corrélation spatiale

    Abdelhak Nassiri, Nabil Nassiri•Revue économique•2008

  • Does Hospital Competition Save Lives? Evidence from the English NHS Patient Choice Reforms

    Open Access•Zosia Cooper, Zack Cooper et al.•The Economic Journal•2011

  • Physicians’ responses to financial and social incentives

    Open Access•Mylene Lagarde, Duane Blaauw•Social Science & Medicine•2017

  • Incentives for Dentists in Public Service

    Martin Chalkley, Colin Tilley et al.•Journal of Public Administration…•2010

  • Multitask Principal–Agent Analyses

    Bengt Holmström, Paul Milgrom•The Journal of Law Economics and…•1991

  • What Kind of Redistribution Do We Want

    James M Buchanan•Economica•1968

Unique citing works5
Citations per year0,28
Citation span2008 - 2023 (16)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 5

Tools

Open DOISci-Hub
Ethnos_APP • Open Source Project • MIT License • Frontend v2.0.0 • Privacy and Cookies • API Documentation: api.ethnos.app/docs • API Source Code: GitHub • DOI: 10.5281/zenodo.17049435 • Frontend Source Code: GitHub • DOI: 10.5281/zenodo.17050053 • cruz.rio.br • Expectantes Misericordiae