Readmission treatment price and product quality in the hospital sector
| Autor: | Domenico Lisi, Roberto Cellini |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
media_common.quotation_subject
Patient Readmission readmissions Competition (economics) 03 medical and health sciences hospital quality demand sluggishness differential game 0502 economics and business Humans Quality (business) 050207 economics health care economics and organizations Quality of Health Care media_common Motivation Service quality Actuarial science 030503 health policy & services Health Policy 05 social sciences Payment Hospitals United States Hospitalization Product (business) Models Economic Incentive Repeated game Business 0305 other medical science Health care quality |
| Zdroj: | Health Economics. 29:61-71 |
| ISSN: | 1099-1050 1057-9230 |
| DOI: | 10.1002/hec.3966 |
| Popis: | In this paper, we study the effect of readmission treatment payment in a dynamic framework characterised by competition among hospitals and sluggish beliefs of patients concerning the service quality. We find that the effect of readmission treatment payment depends on the interplay between the effect of quality in lowering readmissions and its effect on future demand. When the readmission occurrence strongly depends on the service quality, the higher the readmission treatment payment for hospitals, the lower the incentive to provide quality. Instead, when readmission depends barely on quality, the readmission payment acts as the treatment price for first admissions, and thus it reinforces the incentive to provide quality. We also show that the detrimental effect of readmission payments on quality are fed by a high degree of demand sluggishness, that is, by situation where current quality has modest effect on future demand changes. Our findings are robust to different equilibrium concepts of the differential game (i.e., open-loop and state-feedback). The results suggest that a discounted regulated price for readmission can be an effective (and cost-free) policy tool to improve health care quality, especially when the market is characterised by sluggish beliefs about quality. |
| Databáze: | OpenAIRE |
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