Abstract
Since 1995 the financing scheme for medical specialist services in the Netherlands has moved from a fee-for-service scheme to a capitation scheme. This paper analyzes the economic and welfare effects of this policy change. The paper adopts a numerical model that integrates demand and supply considerations and that recognizes the potential roles of moral hazard and supplier-induced demand. The paper finds that the shift in financing regime has been welfare-reducing. The policy change induced medical specialists to lower the supply of the health services which was already lower than optimal before the policy reform.
| Original language | English |
|---|---|
| Pages (from-to) | 946-958 |
| Journal | Economic Modelling |
| Volume | 25 |
| Issue number | 5 |
| DOIs | |
| Publication status | Published - 2008 |
| Externally published | Yes |