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Waiting Lists and Patient Selection

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  • Pedro Pita Barros
  • Pau Olivella

Abstract

We develop a positive model of waiting lists for public hospitals when physicians are able to divert patients from the public to the private sector. Public treatment is free but rationed, i.e., only cases meeting some medical criteria are admitted. Private treatment has no waiting time but entails payment of a fee. Physicians and patients take into account that each patient treated in the private practice reduces the waiting list for public treatment. We show that physicians do not necessarily end up treating the mildest cases from the waiting list. Our analysis is valid for a wide class of doctors' utility functions.

Suggested Citation

  • Pedro Pita Barros & Pau Olivella, 2005. "Waiting Lists and Patient Selection," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 14(3), pages 623-646, September.
    • Handle: RePEc:bla:jemstr:v:14:y:2005:i:3:p:623-646
    DOI: 10.1111/j.1530-9134.2005.00076.x
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    1. Carol Propper, 1995. "The Disutility of Time Spent on the United Kingdom's National Health Service Waiting Lists," Journal of Human Resources, University of Wisconsin Press, vol. 30(4), pages 677-700.
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    More about this item

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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