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Quality control mechanisms under capitation payment for medical services

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  • Pierre Thomas Léger

Abstract

As a result of rising health care costs, many countries, including the United States, have turned to managed care organizations and the use of capitation payment systems. Although this type of system is an effective mechanism for reducing excessive utilization of health care, it may lead to the underprovision of medical services. In this paper propensity to underprovide medical services in a prepayment system as well as the effects of auditing/monitoring on physician behaviour and patient well‐being are examined. Conditions are found under which managed care yields more efficient outcomes than traditional fee‐for‐service care. Suite à la croissance importante des coûts des soins, plusieurs pays, y compris les Etats Unis, ont commencéà se tourner vers des organisations spécialisées pour gérer la prestation des services et à faire usage de systèmes de rémunération per capita. Même si ce genre de système est un mécanisme efficace pour réduire l'usage excessif des service de santé, il peut entraîner une offre déficiente de services médicaux. Ce mémoire examine la propensitéà fournir moins de services dans un système de pré‐paiement. On examine aussi les effets de la surveillance et de la vérification sur le comportement des médecins et sur le bien‐être des patients. On met en lumière les conditions qui assurent que les soins fournis dans un tel système donneront de meilleurs résultats que la rémunération à l'acte.

Suggested Citation

  • Pierre Thomas Léger, 2000. "Quality control mechanisms under capitation payment for medical services," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 33(2), pages 564-586, May.
  • Handle: RePEc:wly:canjec:v:33:y:2000:i:2:p:564-586
    DOI: 10.1111/0008-4085.00029
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    Cited by:

    1. Ehud Guttel & Barak Medina, 2007. "Less Crime, More (Vulnerable) Victims: Game Theory and the Distributional Effects of Criminal Sanctions," Levine's Bibliography 122247000000001799, UCLA Department of Economics.
    2. Ehud Guttel & Barak Medina, 2007. "Less Crime, More (Vulnerable) Victims: Game Theory and the Distributional Effects of Criminal Sanctions," Discussion Paper Series dp472, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
    3. Eugenia Amporfu, 2013. "Effect of regulated user fee on quality of healthcare for the poor and the non-poor," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 60(4), pages 357-373, December.

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