Seminar: Health provider networks, quality and costs

Time: 13.00-14.00 hours
Location: CPB-office, Van Stolkweg 14, The Hague

Presentation: Christophe Schotmüller (University of Copenhagen)

Discussant: Rein Halbersma (Kansspelautoriteit)

Language: English

Registration: Please register by sending an email to seminars@cpb.nl.

Abstract subject:
We provide a modeling framework to think about selective contracting in the health care sector. Two health care providers di er in quality and costs. When buying health insurance, consumers observe neither provider quality nor costs. We derive an equilibrium where health insurers signal provider quality through their choice of provider network. Selective contracting focuses on low cost providers. Contracting both providers signals high quality. Market power tends to lower quality and lead to ineciency. In a dynamic extension of the model, providers under-invest in quality while there can be both over and under-investment in cost reductions if there is a monopoly insurer while an ecient investment equilibrium exists with insurer competition.

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