Hospital Non-price Competition under Global Budgeting
نویسنده
چکیده
We present a hospital non-price competition model to investigate two important concerns when a global budgeting system is applied to the expenditure cap policy and the expenditure target policy. Our results indicate that (1) the treadmill effect, (describing a phenomenon whereby health care providers provide more health care services with a lower reimbursed price under the expenditure cap policy) would be a quality-enhancing and efficiency-improving outcome; (2) both quality of care and managerial efficiency are higher under the expenditure cap policy than those under the expenditure target policy. Keyword: Treadmill effect; Quality competition; Expenditure cap policy; Expenditure target budget, Global Budgeting JEL classification: I11; I18
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