Bargaining and idle public sector capacity in health care

Barros Pedro Pita, Xavier Martinez-Giralt

Research output: Contribution to journalArticleResearchpeer-review

5 Citations (Scopus)

Abstract

A feature present in countries with a National Health Service is the co-existence of a public and a private sector. Often, the public payer contracts with private providers while holding idle capacity. This is often seen as inefficiency from the management of public facilities. We present here a different rationale for the existence of such idle capacity: the public sector may opt to have idle capacity as a way to gain bargaining power vis-à-vis the private provider, under the assumption of a more efficient private than the public sector.
Original languageEnglish
JournalEconomics Bulletin
Volume9
Issue number1
Publication statusPublished - 1 Dec 2005

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