TY - JOUR
T1 - Negotiation advantages of professional associations in health care
AU - Barros, Pedro Pita
AU - Martinez-Giralt, Xavier
PY - 2005/6/1
Y1 - 2005/6/1
N2 - In several instances, third-party payers negotiate prices of health care services with providers. We show that a third-party payer may prefer to deal with a professional association than with the sub-set constituted by the more efficient providers, and then apply the same price to all providers. The reason for this is the increase in the bargaining position of providers. The more efficient providers are also the ones with higher profits in the event of negotiation failure. This allows them to extract a higher surplus from the third-party payer. © 2005 Springer Science + Business Media, Inc.
AB - In several instances, third-party payers negotiate prices of health care services with providers. We show that a third-party payer may prefer to deal with a professional association than with the sub-set constituted by the more efficient providers, and then apply the same price to all providers. The reason for this is the increase in the bargaining position of providers. The more efficient providers are also the ones with higher profits in the event of negotiation failure. This allows them to extract a higher surplus from the third-party payer. © 2005 Springer Science + Business Media, Inc.
KW - Health care
KW - Negotiation
KW - Professional associations
U2 - https://doi.org/10.1007/s10754-005-1867-3
DO - https://doi.org/10.1007/s10754-005-1867-3
M3 - Article
SN - 1389-6563
VL - 5
SP - 191
EP - 204
JO - International Journal of Health Care Finance and Economics
JF - International Journal of Health Care Finance and Economics
ER -