Theoretical and empirical analysis of the supplier induced demand in health care market in China

2014 ◽  
Vol 4 (2) ◽  
pp. 207-220 ◽  
Author(s):  
Jun-Shan Li ◽  
Pei-Pei He ◽  
Rui-Bo He
Keyword(s):  
Health Care ◽  
Theoretical Model ◽  
Empirical Analysis ◽  
Health Care Expenditure ◽  
Integration Theory ◽  
Health Care Market ◽  
Content Type ◽  
Induced Demand ◽  
Economics Of Health ◽  
The Difference

Purpose – The purpose of this paper is to provide theoretical model about supplier-induced demand (SID) in health care market in China. Then, an empirical analysis will also be carried out according to the theoretical model above. At last, some advices will be provided in order to control or eliminate the SID in Chinese health care market. Design/methodology/approach – SID has in fact been one of the most contentious topics in the economics of health care. According to the SID theory in health economics, the theoretical model about SID in China has been provided, then, based on the co-integration theory, the empirical analysis has been brought out. Findings – The study tells that it is the reduction of government finance to hospital, not the increase of supply that is the long-term steady determinants of growth of health care expenditure and that the difference of marginal return to hospital among all kinds of services and medicines is the external factor. Originality/value – To provide theoretical model about SID in health care market in China is the main originality value.

Disease risk and its moderating effect on the e-consultation market offline and online signals

2019 ◽  
Vol 32 (4) ◽  
pp. 1065-1084 ◽  
Author(s):  
Jia Li ◽  
Jie Tang ◽  
David C. Yen ◽  
Xuan Liu
Keyword(s):  
Health Care ◽  
Disease Risk ◽  
Positive Impact ◽  
Healthcare Services ◽  
Moderating Effect ◽  
Health Care Market ◽  
Content Type ◽  
Design Elements ◽  
Market Signals ◽  
Online Reputation

PurposeThe purpose of this paper is to investigate the moderating effect of disease risk in terms of the major signals (i.e. status, reputation and self-representation) on the e-consultation platforms.Design/methodology/approachIn this study, the proposed research hypotheses are tested using the transaction data collected from xywy.com (in Need of Therapy). In fact, xywy.com is one the leading e-consultation service websites in China that provides a platform for the interactions between the physicians and patients (Yu et al., 2016; Peng et al., 2015). Generally speaking, it has all the needed design elements and in other words, a standard e-consultation website should have such items/components as physician homepage, physician review, free consultation, paid consultation and recommendation systems.FindingsThe obtained results reveal that all attributes including status, reputation and self-representation have a positive impact on physician’s online order volume. Moreover, there is a positive moderating effect of disease risk onto the online reputation, indicating a higher effect exists for the diseases with high risk. However, the effect of offline status and online self-representation is not moderated by the disease risk, indicating market signals (online reputation) may have a stronger predictive power than seller signals (offline status and online self- representation), and therefore market signals are more effective when/if the disease risk is high.Originality/valueE-consultation has gradually become a significant trend to provide the healthcare services, in the emerging economy such as China because of shortage of medical resources but having an adequate access in internet usage. The impacts of signals on the health care market have been validated by previous studies. However, the research focusing on the moderating effect of signaling environment in the health care industry is still lacking. As a result, the value of this research helps to bridge the aforementioned research gap.

Improving health care costing with resource consumption accounting

2016 ◽  
Vol 29 (6) ◽  
pp. 646-663
Author(s):  
Hasan Ozyapici ◽  
Veyis Naci Tanis
Keyword(s):  
Health Care ◽  
Real Life ◽  
Resource Consumption ◽  
Selling Price ◽  
Health Care Administrators ◽  
Content Type ◽  
The Difference ◽  
Costing System ◽  
Traditional Costing

Purpose – The purpose of this paper is to explore the differences between a traditional costing system (TCS) and resource consumption accounting (RCA) based on a case study carried out in a hospital. Design/methodology/approach – A descriptive case study was first carried out to identify the current costing system of the case hospital. An exploratory case study was then conducted to reveal how implementing RCA within the case hospital assigns costs differently to gallbladder surgeries than the current costing system (i.e. a TCS). Findings – The study showed that, in contrast to a TCS, RCA considers the unused capacity, which is the difference between the work that can be performed based on current resources and the work that is actually being performed. Therefore, it assigns lower total costs to open and laparoscopic gallbladder surgeries. The study also showed that by separating costs into fixed and variable RCA allows managers to benefit from a pricing strategy based on the difference between the service’s selling price and variable costs incurred in providing that service. Research limitations/implications – The limitation of this study is that, because of time constraints, the implementation was performed in the general surgery department only. However, since RCA is an advanced system that has the same application procedures for any department inside in a hospital, managers need only time gaps to implement this system to all parts of the hospital. Practical implications – This study concluded that RCA is better than a TCS for use in health care settings that have high overhead costs because it accurately assigns overhead costs to services by considering unused capacities incurred by a hospital. Consequently, this study provides insight into both measuring and managing unused capacities within the health care sector. This study also concluded that RCA helps health care administrators increase their competitive advantage by allowing them to determine the lowest service price. Originality/value – Since the literature review found no study comparing RCA with TCS in a real-life health care setting, little is known about differences arising from applying these systems in this context. Thus, the current study fills this gap in the literature by comparing RCA with TCS for both open and laparoscopic gallbladder surgeries.

Sociodemographic determinants of health care expenditure: micro level evidence of a fast-growing developing country

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yong Kang Cheah ◽  
Kim-Leng Goh ◽  
Azira Abdul Adzis
Keyword(s):  
Health Care ◽  
Marital Status ◽  
Rural Areas ◽  
Policy Design ◽  
Health Care Expenditure ◽  
Sociodemographic Factors ◽  
Healthcare Intervention ◽  
Content Type ◽  
Participation Decision ◽  
Household Heads

PurposeThe objective of this study is to examine the sociodemographic factors that are associated with health care expenditure among households in Malaysia.Design/methodology/approachThis study examines health care participation decision and amount of expenditure using the exponential Type 2 Tobit model. A dataset of a large sample (n = 14,838) that is nationally representative is used.FindingsThe results suggest that household size, location of residence as well as age, education and marital status of the household heads are significantly associated with household expenditure on health care. Health care expenditure increases with the age and educational attainment of household heads, whereas those who are being employed and residing in rural areas have lower health care expenditure. Although larger households are more likely to consume health care than smaller households, they spend less on health care. Furthermore, marital status does not affect the participation decision of health care expenditure, but the variable is associated with the decision on the amount of the expenditure.Practical implicationsThe results provide insights into groups of population that can be targeted for healthcare intervention programmes and policy design.Originality/valueThis study is the first to our knowledge to use a microeconometric approach to analyse the health care participation as well as its level of expenditure among households in Malaysia.

Modeling the emergency health-care supply chains: responding to the COVID-19 pandemic

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md Kamal Hossain ◽  
Vikas Thakur ◽  
Sachin K. Mangla
Keyword(s):  
Health Care ◽  
Supply Chain ◽  
Theoretical Model ◽  
Structural Model ◽  
Health Care Facilities ◽  
Extensive Literature ◽  
Economic Implications ◽  
Content Type ◽  
Micmac Analysis ◽  
Health Care Supply

Purpose Due to the rapid surge in the number of COVID-19 cases in India, the health-care supply chain (HCSC) disruptions and uncertainties have increased manifold posing severe challenges to health-care facilities and significantly hampering the functioning of the health industry. This study aims to propose a hierarchical structural model of enablers of HCSC in the COVID-19 outbreak and identifies inter-relationships among them in the health-care market. Design/methodology/approach Enablers of emergency HCSC have been identified through extensive literature review and experts’ opinions. Subsequently, total interpretive structural modeling (TISM) and cross-impact matrix-multiplication (MICMAC) analysis have been implemented to determine the hierarchical inter-relationships among enablers and classify them according to their contribution to the overall system. Findings The research has identified and validated 15 enablers of the emergency supply chain in health-care businesses. The study resulted in a seven-level hierarchical structural model based on enabler’s driving and dependence powers. Further, the application of MICMAC analysis resulted in the classification of enablers into four groups, namely, autonomous, dependent, linkage and independent group. Research limitations/implications This study would help health professionals, policymakers and academia to implement the theoretical model constructed to alleviate the effect of COVID-19 by improving the HCSC performances in pandemic situations. This study has social and economic implications in terms of cost-effective and efficient delivery of care services in health emergencies. Originality/value The proposed theoretical model constructed is a new effort addressing the issues of HCSC in the COVID-19 crisis. Procedural implementation of TISM and MICMAC analysis in this study would help researchers to grasp concepts in a very lucid manner. The present study is one of the very few studies analyzing enablers in pandemic situations by implementing the TISM approach.

Model for formulating competitive strategy: the supplementary health sector case

2017 ◽  
Vol 24 (1) ◽  
pp. 219-243 ◽  
Author(s):  
Raniere Rodrigues dos Santos ◽  
Fagner José Coutinho de melo Melo ◽  
Calline Neves de Queiroz Claudino ◽  
Denise Dumke de Medeiros
Keyword(s):  
Health Care ◽  
Health Insurance ◽  
Competitive Strategy ◽  
Health Sector ◽  
Adaptive Strategy ◽  
Private Health Care ◽  
Health Care Market ◽  
Performance Study ◽  
Content Type ◽  
Proposed Model

Purpose The implementation of quality in health services should go beyond legal, regulatory and purely technical obligations in relation to carrying out health insurance practices. The purpose of this paper is to present a management model that intends to equip private health care companies in favor of quality development from the use of a model for forming a competitive strategy in the supplementary health sector companies. Design/methodology/approach In this approach the proposed model is grounded on guiding procedures for the process of strategy formulation, with a systemic structure that separates in analysis involving the internal and external environment to the organization to verify the strategy that best applies. It is based on prescriptive strategy – the five competitive forces and, with adaptive strategy, the competition arenas. Findings Through the proposed model the analytical mechanisms of political-legal environments surrounding companies in the sector can be described, identify organizations and their process performance, study them, and perform comparative analysis of information between them. All of this development seeks to ensure the formation of policies, to guide strategic action in health insurance. Originality/value This work strongly contributes to the foundation and strengthening of strategic knowledge and has quality aimed at the study of the private health care market, due to the high degree of regulatory requirements by the state to the businesses, the environment turns into a chain of complex information that migrates from the condition of just meeting legal requirements, to also satisfying the demands of a hypercompetitive market.

The impact of Health Sector Evolution Plan on the performance of hospitals in Iran

2018 ◽  
Vol 23 (2) ◽  
pp. 111-119 ◽  
Author(s):  
Satar Rezaei ◽  
Mohammad Hajizadeh ◽  
Mohammad Bazyar ◽  
Ali Kazemi Karyani ◽  
Behrooz Jahani ◽  
...  
Keyword(s):  
Health Care ◽  
Average Length ◽  
Health Care Expenditure ◽  
Health Sector ◽  
Poor Performance ◽  
Content Type ◽  
Average Length Of Stay ◽  
Before And After ◽  
Recent Reform ◽  
The Impact

Purpose The Health Sector Evolution Plan (HSEP) is the most recent reform in Iran’s health care system that was launched in May 2014 in all university-affiliated hospitals to reduce health care expenditure for patients, while improving the efficiency and quality of hospital services. The purpose of this paper is to evaluate the impact of the HSEP on the performance of 15 hospitals affiliated with Kermanshah University of Medical Sciences (KUMS), located in the western region of Iran. Design/methodology/approach The Pabon Lasso model was used to measure the performance of hospitals before and after the implementation of the HSEP in 2013-2014 and 2015-2016, respectively. Three indicators of average length of stay (ALoS), bed occupancy rate (BOR) and bed turnover rate (BTR) were analyzed by the Pabon Lasso model. Findings The results showed that the average ALoS, BTR and BOR before the introduction of the HSEP were 2.59 days, 92 times and 57 percent, respectively, and the corresponding figures for these indicators after the implementation of the HSEP were 2.61 days, 98.9 times and 59.9 percent. The results indicated that before the introduction of the HESP, 40 percent of hospitals were in zone 1 (poor performance: low BTR and BOR and high ALoS), 27 percent in zone 2, 20 percent in zone 3 (good performance: high BTR and BOR and low ALoS) and 13 percent in zone 4. After the HSEP, the proportion of hospitals in zones 1-4 was 33, 27, 20 and 20 percent, respectively. Originality/value This study is the first to use the Pabon Lasso model technique to evaluate the impact of the HSEP on hospitals affiliated with KUMS.

The Nexus between Public Health Care Expenditure and Health Outcomes in India

GIS Business ◽  
2020 ◽  
Vol 15 (1) ◽  
pp. 300-312
Author(s):  
Bandita Deka
Keyword(s):  
Health Care ◽  
Health Outcomes ◽  
Health Care Expenditure ◽  
Market Mechanism ◽  
Public Health Care ◽  
Health Care Market ◽  
Best Interest ◽  
Financing Health Care ◽  
The Government ◽  
The Impact

The issue of financing health care has assumed greater significance in the developing world.There are two broad approaches of financing health care- market-based and government (public) financed. Considering the social welfare obligations, market mechanism is unlikely to operate at the best interest of the people who live at the bottom end of the income distribution. Hence, from welfare perspective, the government needs to intervene more vigorously in the areas of education and health. Governments have assumed considerable importance in the provision of certain goods and services of which health care is of significant importance…in provision of health care services free of cost or at subsidized prices (Gertler 1990). There is a need to understand the relationship (nexus) between increasing public spending and improving health outcomes. Therefore, this paper makes an attempt to examine the impact of government expenditure on health care in health outcomes in India.

Sign in / Sign up

Export Citation Format

Share Document