Contracts for health services in the British National Health Service (NHS) take a number of different forms. This paper reviews and then tests the economic theory of contracts as applied to the provision of health services. We find that contracts used in the NHS can be reconciled with predictions from contract theory, that there is stronger evidence of incentives than of risk sharing influencing the form of contract used and that the presence of clinicians in contract negotiations affects the form of contract used in a way that is consistent with them reflecting the interests of patients. We consider the implications of these findings for policy towards publicly funded health services.
|Name||Dundee Discussion Papers in Economics|
|Publisher||University of Dundee|