Choice ofTreatmentIntensities by aNonprofitHospitalUnderProspectivePricing
作者:
William P. Rogerson,
期刊:
Journal of Economics&Management Strategy
(WILEY Available online 1994)
卷期:
Volume 3,
issue 1
页码: 7-51
ISSN:1058-6407
年代: 1994
DOI:10.1111/j.1430-9134.1994.00007.x
出版商: Blackwell Publishing Ltd
数据来源: WILEY
摘要:
Under prospective pricing, payers for health care essentially use price regulation of hospitals as a way of indirectly regulating the provision of treatment intensity. This paper presents a theory of how a nonprofit hospital selects treatment intensities for its products given the payer's choice of prices and then determines how the payer should select prices in light of this theory. The main result is that, in equilibrium, the ratio of price to marginal cost will vary across products inversely with the elasticity of demand with respect to treatment intensity. This means that, generally, the hospital will earn positive (negative) accounting profit on products with low‐(high‐) intensity elasticities of dem
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