Can I read NHS contracts: An agency approach on EtoBox?

NHS contracts: An agency approach by Rosella Levaggi is a Economics, Econometrics and Finance article available to read on EtoBox.

What is NHS contracts: An agency approach about?

The White Paper Working for Patients' has produced dramatic changes in the organization of health care in the UK that will soon be followed by analogous reforms in other countries. The core of the reform is represented by the separation of the responsibility for purchasing health care from providing the services. The creation of this internal market is said to enhance efficiency, but some peculiar characteristics of health care prevent a Pareto optimal solution being reached. This paper describes the purchaser-provider relationship using an innovative principal agent model to assess the relative merits of the different forms of contracts. The model is also used to show how competition among providers allows the purchaser to extract this private information. From a theoretical point of view, the approach is innovative in the formulation of the principal's objective function; the interesting finding is that the presence of a stringent budget constraint alters both risk-sharing conditions and the First-best contract proposed by the literature. From a policy point of view, the paper explains why in the first wave over 75% of contracts between purchasers and providers were block contrac

Who reads NHS contracts: An agency approach?

Author

Rosella Levaggi

Publisher

John Wiley and Sons; Wiley (John Wiley & Sons); John Wiley & Sons Inc.; Wiley (ISSN 1057-9230)

Published

1996

Language

EN

Field

Economics, Econometrics and Finance (Social Sciences)