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The changing nature of contracts in German health care

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  • Riemer-Hommel, Petra

Abstract

The flexibility inherent in the German health care system is fairly limited. The contracting environment itself is characterized by bilateral cartels negotiating the terms covering their respective members. Looking at some recently implemented reforms, namely structural contracts and experimental settings, the paper assesses the potential for sickness funds to take on a more active role. The paper also evaluates the implications for the contracting relationships between the statutory sickness funds and provider associations. Furthermore, the potential effect of selective contracting on the health care system is studied. A look at the reforms recently enacted in other countries illustrates the difficulties contractual reform has to cope with in an environment characterized by strong informational asymmetries. It is postulated that both private and public choices are needed for a successful reform effort.

Suggested Citation

  • Riemer-Hommel, Petra, 2002. "The changing nature of contracts in German health care," Social Science & Medicine, Elsevier, vol. 55(8), pages 1447-1455, October.
    • Handle: RePEc:eee:socmed:v:55:y:2002:i:8:p:1447-1455
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    Citations

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    Cited by:

    1. Ashton, Toni & Cumming, Jacqueline & McLean, Janet, 2004. "Contracting for health services in a public health system: the New Zealand experience," Health Policy, Elsevier, vol. 69(1), pages 21-31, July.
    2. Allen, Pauline & Hommel, Petra Riemer, 2006. "What are `third way' governments learning? Health care consumers and quality in England and Germany," Health Policy, Elsevier, vol. 76(2), pages 202-212, April.

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