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Chapter 15 Government purchasing of health services

Elsevier B.V.
DOI: 10.1016/s1574-0064(00)80174-2
  • Part 3 Insurance Markets
  • Managed Care
  • And Contracting
  • Political Science


Abstract This chapter reviews the literature on payment schemes for government purchases of health services. It focuses on four themes: (1) the tension between obtaining appropriate quality of services and keeping the cost of those services at an acceptable level; (2) the role of cost sharing by the payer when there is asymmetric information between purchaser and supplier about costs or case-mix; (3) the importance of commitment in purchasing; and (4) the role of reputation in maintaining quality in long term relationships between purchasers and suppliers.

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