Theory and Practice of Market Relations in Health Care
This study examines the opportunities of employing market mechanisms in public health sector (particularly in the systems of budgetary funding and compulsory medical insurance). Theoretical models of market in public health service are given consideration, including the different interpretations of the concept of “regulated competition”. The author works out a set of conditions for the realization of market model that would not contradict with the policy goals in health care sector. The neoclassic approach to market analysis is supplemented with the analytical apparatus of neo-institutional theory. On this basis the theoretical conceptions about the market model of health care are adjusted. Theoretical analysis is enforced by an analysis of practices of implementing market models in public healthcare abroad (in the USA, the Netherlands and the UK before all), specifically stressing the following characteristics: the “shortcomings” of insurance market; the role of consumer choice; modes of interaction between consumers and health care providers; mechanisms of sharing financial risks amongst them etc. A special place is given to the role of institutional factors of market reforms. The author analyzes in detail the existing model of mandatory medical insurance and hypothesizes the necessity of creating new institutional conditions for competition in the medical and insurance market within the system of mandatory medical insurance of the Russian Federation.
Addressed to economists, healthcare workers, as well as everyone interested in the issues of health services; it can be used as a supplementary training guide for courses in the field of public sector economy.