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A Model for Dual Healthcare Market with Congestion Differentiation

Author

Listed:
  • Damien Besancenot

    (UPCité - Université Paris Cité, LIRAES (URP_ 4470) - Laboratoire Interdisciplinaire de Recherche Appliquée en Economie de la Santé - UPCité - Université Paris Cité)

  • Karine Lamiraud

    (ESSEC Business School, THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université)

  • Radu Vranceanu

    (ESSEC Business School, THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université)

Abstract
The French market for specialist physician care has a dual legal structure: physicians must exclusively work in sector 1 and charge regulated fees or in sector 2, where they can freely set their fees. Patient out-of-pocket payments in sector 2 are partially covered by private insurance. The primary differentiating factor between both sectors is the number of patients per specialist, which in turn directly affects the overall quality of the service provided. We built an equilibrium model to analyse both specialists decisions about which sector to work in, and patients choice of physician and therefore sector. More specifically, the model allowed us to study the effect of changes in prices and economy-wide patient-to-specialist ratios on profits and patients utility associated with the services provided in each sector.

Suggested Citation

  • Damien Besancenot & Karine Lamiraud & Radu Vranceanu, 2020. "A Model for Dual Healthcare Market with Congestion Differentiation," Working Papers hal-03028437, HAL.
    • Handle: RePEc:hal:wpaper:hal-03028437
    Note: View the original document on HAL open archive server: https://essec.hal.science/hal-03028437
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    References listed on IDEAS

    as
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    Keywords

    Dual market; Congestion; Regulation; Balance billing;
    All these keywords.

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