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An economic analysis of payment for health care services: the United States and Switzerland compared


Zweifel, Peter; Tai-Seale, Ming (2009). An economic analysis of payment for health care services: the United States and Switzerland compared. International Journal of Health Care Finance and Economics, 9(2):197-210.

Abstract

This article seeks to assess whether physician payment reforms in the United States and Switzerland were likely to attain their objectives. We first introduce basic contract theory, with the organizing principle being the degree of information asymmetry between the patient and the health care provider. Depending on the degree of information asymmetry, different forms of payment induce “appropriate” behavior. These theoretical results are then pitted against the RBRVS of the United States to find that a number of its aspects are not optimal. We then turn to Switzerland’s Tarmed and find that it fails to conform with the prescriptions of economic contract theory as well. The article closes with a review of possible reforms that could do away with uniform fee schedules to improve the performance of the health care system.

Abstract

This article seeks to assess whether physician payment reforms in the United States and Switzerland were likely to attain their objectives. We first introduce basic contract theory, with the organizing principle being the degree of information asymmetry between the patient and the health care provider. Depending on the degree of information asymmetry, different forms of payment induce “appropriate” behavior. These theoretical results are then pitted against the RBRVS of the United States to find that a number of its aspects are not optimal. We then turn to Switzerland’s Tarmed and find that it fails to conform with the prescriptions of economic contract theory as well. The article closes with a review of possible reforms that could do away with uniform fee schedules to improve the performance of the health care system.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Language:English
Date:June 2009
Deposited On:14 Dec 2009 15:48
Last Modified:24 Sep 2019 16:21
Publisher:Springer
ISSN:1389-6563
OA Status:Green
Publisher DOI:https://doi.org/10.1007/s10754-009-9061-7
Official URL:http://springerlink.metapress.com/content/2654k21uu2p4t46m/?p=96fa0bf0dbd14762a3b78171d64eac9f&pi=6

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