Bargaining and idle public sector capacity in health care

P.P. Barros, X. Martínez-Giralt

Research output: Contribution to journalArticleResearchpeer-review

5 Citations (Scopus)


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
Pages (from-to)1-8
JournalEconomics Bulletin
Issue number5
Publication statusPublished - 1 Dec 2005


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