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Patients' mobility across borders: a welfare analysis.

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    Summary
    This summary is machine-generated.

    European citizens increasingly seek cross-border healthcare, impacting welfare systems. Optimal policy depends on pricing: efficient region pricing favors mobility, while inefficient pricing favors patient choice for better social welfare.

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    Area of Science:

    • Health Economics
    • Public Policy
    • European Healthcare Systems

    Background:

    • Welfare systems traditionally restrict healthcare access to national territories.
    • Medical tourism is rapidly expanding globally and within Europe.
    • A growing number of European citizens receive cross-border healthcare funded by public insurers.

    Purpose of the Study:

    • To analyze the economic implications of cross-border healthcare within European welfare systems.
    • To differentiate between regulated patient mobility and patient-choice driven medical tourism.
    • To determine how healthcare restrictions, transfer prices, and mobility rules affect social welfare allocation.

    Main Methods:

    • Economic modeling of patient mobility and welfare allocation.
    • Analysis of transfer pricing mechanisms in cross-border healthcare.
    • Comparative analysis of regulated mobility versus patient choice.

    Main Results:

    • Social welfare outcomes vary based on the transfer price relative to regional marginal costs.
    • If transfer prices equal the efficient region's marginal cost, regulated mobility is superior.
    • If transfer prices equal the inefficient region's marginal cost, patient choice is preferred.
    • Patient mobility can lead to a convergence of cost/effectiveness levels across regions over time.

    Conclusions:

    • Healthcare policy must consider economic factors like transfer pricing and mobility rules.
    • The optimal strategy for cross-border healthcare depends on specific economic conditions and regional efficiencies.
    • Patient mobility presents a dynamic trade-off between static regional cost-effectiveness and long-term harmonization.