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Methods for Presenting Real-world Objects Under Controlled Laboratory Conditions
Published on: June 21, 2019
Costing and competition
1Warwick University Business School.
Health Services Management
|June 7, 1994
Summary
A new healthcare contract system bases prices on full costs, driving efficiency through competition. Providers also compete on non-price factors like quality and innovation.
Area of Science:
- Health economics
- Healthcare management
Background:
- The "Working for Patients" reforms introduced a new healthcare contracting system.
- This system shifted to full cost-based pricing, aiming to eliminate cross-subsidization between healthcare services.
Purpose of the Study:
- To analyze the economic implications of the new healthcare contracting system.
- To examine the role of cost-based pricing and competition in healthcare service provision.
Main Methods:
- Analysis of the "Working for Patients" reforms and their impact on healthcare contracts.
- Economic evaluation of cost-based pricing mechanisms in the healthcare sector.
Main Results:
- The new system necessitates enhanced costing systems for providers.
- Price competition is a key outcome, intended to improve service efficiency.
- Non-price competition, including differentiation on quality, flexibility, and innovation, also emerged.
Conclusions:
- The "Working for Patients" reforms established a competitive healthcare market.
- Improved costing systems and competition (both price and non-price) are crucial for healthcare efficiency.
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