Supply-side risk adjustment and outlier payment policy

In most health care systems where a prospective payment system is implemented, an outlier payment is used to cover the hospitals' unusually high costs. When the hospital chooses its cost reduction effort before observing a patient's severity, we show that the best outlier payment is based on the realized cost when the hospital exerts the first best level of effort, for any level of severity.

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Year of publication:	2008
Authors:	Mougeot, Michel ; Naegelen, Florence
Published in:	Journal of Health Economics. - Elsevier, ISSN 0167-6296. - Vol. 27.2008, 5, p. 1196-1200
Publisher:	Elsevier

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005204190