Abstract
This paper analyses the optimal choice of medical investment and design of health insurance system in an interactive medical context with the utility-maximising patient, the net-revenue-maximising physician and the insurer pursuing the patient’s benefits and a balance between revenues and costs. The feasibility of cost reduction or benefit improving is addressed. With positive payments to the physician, cost reduction or benefit improving is obtainable through a reduction in the social loss by restraining overinvestment in medical capital goods. A fully prospective payment system would be a cost- minimising payment system but not definitely a benefit-improving system.
Original language | English |
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Pages (from-to) | 23-41 |
Number of pages | 19 |
Journal | International Journal of Revenue Management |
Volume | 2 |
Issue number | 1 |
DOIs | |
Publication status | Published - 2008 Jan 1 |
All Science Journal Classification (ASJC) codes
- Business and International Management
- Finance
- Economics and Econometrics
- Strategy and Management