Dundee Discussion Papers in Economics 216: Choice of contracts in the British National Health Service: an empirical study

Martin Chalkley, Duncan McVicar

    Research output: Working paperDiscussion paper

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    Abstract

    Following major reforms of the British National Health Service (NHS) in 1990, the roles of purchasing and providing health services were separated, with the relationship between purchasers and providers governed by contracts. Using a mixed multinomial logit analysis, we show how this policy shift led to a selection of contracts that is consistent with the predictions of a simple model, based on contract theory, in which the characteristics of the health services being purchased and of the contracting parties influence the choice of contract form. The paper thus provides evidence in support of the practical relevance of theory in understanding health care market reform.
    Original languageEnglish
    PublisherUniversity of Dundee
    Publication statusPublished - 2008

    Publication series

    NameDundee Discussion Papers in Economics
    PublisherUniversity of Dundee
    No.216
    ISSN (Print)1473-236X

    Keywords

    • Health services
    • British NHS
    • Physician agency
    • Financial incentives

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