Skip to main content
Article
Negotiation Advantages of Professional Associations in Health Care
International Journal of Health Care Finance and Economics (2005)
  • Pedro P. Barros, Universidade Nova de Lisboa
  • Xavier Martinez-Giralt, Universitat Autonoma de Barcelona
Abstract

In several instances, third-party payers negotiate prices of health care services with providers. We show that a third-party payer may prefer to deal with a professional association than with the sub-set constituted by the more efficient providers, and then apply the same price to all providers. The reason for this is the increase in the bargaining position of providers. The more efficient providers are also the ones with higher profits in the event of negotiation failure. This allows them to extract a higher surplus from the third-party payer.

Keywords
  • professional associations,
  • negotiation,
  • health care
Disciplines
Publication Date
December, 2005
Citation Information
Pedro P. Barros and Xavier Martinez-Giralt. "Negotiation Advantages of Professional Associations in Health Care" International Journal of Health Care Finance and Economics Vol. 5 (2005)
Available at: http://works.bepress.com/xavier_martinez_giralt/3/