Low risk, high reward? Repeated competitive biddings with multiple winners in health care.
Choice modelling
Competition
Competitive bidding
Health care
Prices
Journal
The European journal of health economics : HEPAC : health economics in prevention and care
ISSN: 1618-7601
Titre abrégé: Eur J Health Econ
Pays: Germany
ID NLM: 101134867
Informations de publication
Date de publication:
Jun 2020
Jun 2020
Historique:
received:
16
04
2019
accepted:
03
12
2019
pubmed:
7
1
2020
medline:
10
3
2021
entrez:
6
1
2020
Statut:
ppublish
Résumé
We study physiotherapy providers' prices in repeated competitive biddings where multiple providers are accepted in geographical districts. Historically, only very few districts have rejected any providers. We show that this practice increased prices and analyze the effects the risk of rejection has on prices. Our data are derived from three subsequent competitive biddings. The results show that rejecting at least one provider decreased prices by more than 5% in the next procurement round. The results also indicate that providers have learned to calculate their optimal bids, which has also increased prices. Further, we perform counterfactual policy analysis of a capacity-rule of acceptance. The analysis shows that implementing a systematic acceptance rule results in a trade-off between direct cost savings and service continuity at patients' usual providers.
Identifiants
pubmed: 31902025
doi: 10.1007/s10198-019-01143-1
pii: 10.1007/s10198-019-01143-1
pmc: PMC7214509
doi:
Types de publication
Journal Article
Langues
eng
Sous-ensembles de citation
IM
Pagination
483-500Subventions
Organisme : Kela
ID : L556/2005, 12§
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