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Unpublished Paper
Selecting Health Care Providers: “Any willing provider” vs. negotiation
European Journal of Political Economy (2008)
  • Pedro P Barros, Universidade Nova de Lisboa
  • Xavier Martinez-Giralt, Universitat Autonoma de Barcelona
Abstract

We address the question of how a third-party payer (e.g. an insurer) decides what providers to contract with. Two different mechanisms are studied and their properties compared. A first mechanism consists in the so-called “any willing provider” where the third-party payer announces a contract and every provider freely decides to sign it or not. The second mechanism is the third-party payer setting up a bargaining procedure with both providers. The main finding is that the decision of the third-party payer depends on the surplus to be shared. When it is relatively high the third-party payer prefers the any willing provider system. When, on the contrary, the surplus is relatively low, the third-party payer will select a negotiated solution.

Keywords
  • Bargaining,
  • health care provision,
  • Any willing provider.
Disciplines
Publication Date
June, 2008
Citation Information
Pedro P Barros and Xavier Martinez-Giralt. "Selecting Health Care Providers: “Any willing provider” vs. negotiation" European Journal of Political Economy Vol. 24 Iss. 2 (2008)
Available at: http://works.bepress.com/pedro_pita_barros/2/