Please use this identifier to cite or link to this item: http://hdl.handle.net/1822/30329

TitlePatient mobility, health care quality and welfare
Author(s)Brekke, Kurt R.
Levaggi, Rosella
Siciliani, Luigi
Straume, Odd Rune
KeywordsPatient mobility
Health care quality
Regional and global welfare
Issue date2014
PublisherElsevier
JournalJournal of economic behavior and organization
Abstract(s)Patient mobility is a key issue in the EU which recently passed a new law on a patient’s right to EU-wide provider choice. In this paper we use a Hotelling model with two regions that differ in technology to study the impact of patient mobility on health care quality, health care financing and welfare. We show that without patient mobility quality is too low (high) and too few (many) patients are treated in the high-skill (low-skill) region. The effects of patient mobility depend on the transfer payment. If the payment is below marginal cost, mobility leads to a ‘race-to-the-bottom’ in quality and lower welfare in both regions. If the payment is equal to marginal cost, quality and welfare remain unchanged in the high-skill region, but the low-skill region benefits. For a socially optimal payment, which is higher than marginal cost, quality levels in the two regions are closer to (but not at) the first best, but welfare is lower in the low-skill region. Thus, patient mobility can have adverse effects on quality provision and welfare unless an appropriate transfer payment scheme is implemented.
TypeArticle
URIhttp://hdl.handle.net/1822/30329
DOI10.1016/j.jebo.2014.04.025
ISSN0167-2681
Publisher versionhttp://ac.els-cdn.com/S0167268114001383/1-s2.0-S0167268114001383-main.pdf?_tid=85defd28-48b5-11e4-aece-00000aab0f02&acdnat=1412090700_6b2fe9ddc0c970e94e97484bbc6193a5
Peer-Reviewedyes
AccessRestricted access (UMinho)
Appears in Collections:NIPE - Artigos em Revistas de Circulação Internacional com Arbitragem Científica

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