Market failures would be imminent in most unregulated health care markets. Thus, regulatory mechanisms influence the way health care systems are financed and the way demand and supply in health care systems are determined. On the supply side, regulatory mechanisms strive to solve agency problems in the relationship between patients and health care professionals by introducing payment systems. However, little progress has made in designing payment schemes that encourage physicians to act as perfect agents for their patients as well as for third-party payers .
Designers of health care systems around the world use a variety of regulatory mechanisms in order to overcome market failures that would be imminent in unregulated health care markets. Competitive health insurance systems need to overcome adverse selection. Comprehensive coverage leads to moral hazardand a relationship between patient and physician that has severe agency...
- 1.Engström S, Foldevi M, Borgquist L (2001) Is general practice effective? Scandinav J Prim Heal Care 19:131–44Google Scholar
- 4.Greß S, Delnoij D, Groenewegen P (2006) Managing primary care behaviour through payment systems and financial incentives. In: Boerma W, Rico A, Saltman R (ed) Primary care in the driver's seat? Organizational reform in European primary care. Open University Press, London, pp 184–200Google Scholar
- 6.Lynch M (1998) Financial incentives and primary care provision in Britain: Do General Practitioners maximse their income? In: Zweifel P (ed) Health, the medical profession and regulation. Kluwer Academic Publishers, Boston/Dordrecht/London, pp 191–210Google Scholar
- 7.Rice T (2006) The physician as the patient's agent. In: Jones A (ed) The Elgar Companion to Health Economcis. Edward Elgar Publishing, Cheltenham/Northampton, pp 261–278Google Scholar