Summary
The paper uses unique data on contracts concluded by providers of home care to evaluate the effect of provider market power on prices of home care services in the Netherlands. Since, at least in some regions, one or two providers dominate the market, there are concerns about the effect of providers’ market power on the pricing of home care services. Using data on contracted prices and quantities for 2004–2006, we find that providers with a larger market share are able to contract at a higher price. The effect remains after controlling for quality.
Article PDF
Similar content being viewed by others
Avoid common mistakes on your manuscript.
References
Bamezai A., Melnick G., Mann J., Zwanziger J. (2003) ‘Hospital Selective Contracting withoug Consumer Choice: What Can We Learn from Medi-Cal?’. Journal of Policy Analysis and Management 22(1): 65–84
Brooks , Dor A., Wong H.S. (1997) ‘Hospital-Insurer Bargaining: an Empirical Evidence of Appendectomy Pricing’. Journal of Health Economics 16: 417–434
Burr J.A., Choi N.G., Mutchler J.E., Caro F.G. (2005) ‘Caregiving and Volunteering: are Private and Public Helping Behaviors Linked?’. Journals of Gerontology 60(5): S247–S256
CTG/ZAio and CTZ (2005), ‘Visiedocument extramurale AWBZ-zorg’, Analyse en aanbevelingen voor concurrentie, Utrecht.
Gal-Or E. (1999) ‘The Profitability of Vertical Mergers Between Hospitals and Physician Practices’. Journal of Health Economics 18(5): 623–654
Halbersma, R.S., M.C. Mikkers, E. Motchenkova and I. Seinen (2007), ‘Market Structure and Hospital-Insurer bargaining in the Netherlands’, TILEC Discussion Paper DP2007-006.
ICM (Interdepartementale Commissie Marktordening) (2005), Tot zorg geprikkeld: arbeidsproductiviteit en innovatieve kracht in de zorg, The Ministry of Economic Affairs, October 2005.
McKnight E. (2006) ‘Home Care Reimbursement, Long-Term Care Utilization, and Health Outcomes’. Journal of Public Economics 90(1–2): 293–323
Melnick G., Zwanziger J., Bamezai A., Pattison R. (1992) ‘The Effects of Market Structure and Bargaining Position on Hospital Prices’. Journal of Health Economics 11: 217–233
NMa (Nederlandse Mededingingsautoriteit) (2004), ‘Visiedocument AWBZ-zorgmarkten’, January 2004, The Hague.
NZa (Nederlandse Zorgautoriteit) (2006), ‘Monitor extramurale AWBZ-zorg’, June 2006, Utrecht.
NZa (Nederlandse Zorgautoriteit) (2007), ‘Uitvoeringstoets: Overheveling zorgkantoortaken’. Voorstellen voor de korte en de lange termijn, March 2007, Utrecht.
Pregibon D. (1980) ‘Goodness of Link Tests for Generalized Linear Models’. Applied Statistics 29: 15–24
PWC (Price Waterhouse Coopers) (2005), ‘Contractering AWBZ-zorg 2005’, November 9, 2005.
Staten M., Dunkelberg W., Umbeck J. (1987) ‘Market Share and the Illusion of Power’. Journal of Health Economics 6(1): 43–58
Staten M., Umbeck J., Dunkelberg W. (1988) ‘Market Share/Market Power Revisited’. Journal of Health Economics 7(1): 73–83
Svejnar J. (1986) ‘Bargaining Power, Fear of Disagreement, and Wage Settlements: Theory and Evidence from US Industry’. Econometrica 54(5): 1055–1078
van den Berg, B. and F.T. Schut (2003), ‘Het Einde van Gratis Mantelzorg?’. Economisch Statistische Berichten, 88(4413), 420–422.
WHO, World Health Organization (2003), ‘Key policy issues in long-term care’, Geneva: WHO.
WHO, World Health Organization (2008), ‘How can the settings used to provide care to older people be balanced?’, Geneva: WHO.
Open Access
This article is distributed under the terms of the Creative Commons Attribution Noncommercial License which permits any noncommercial use, distribution, and reproduction in any medium, provided the original author(s) and source are credited.
Author information
Authors and Affiliations
Corresponding author
Additional information
The views expressed in this article are those of the author and do not represent the official policy or position of the Dutch Healthcare Authority.
Rights and permissions
Open Access This is an open access article distributed under the terms of the Creative Commons Attribution Noncommercial License (https://creativecommons.org/licenses/by-nc/2.0), which permits any noncommercial use, distribution, and reproduction in any medium, provided the original author(s) and source are credited.
About this article
Cite this article
Mosca, I., Pomp, M. & Shestalova, V. Market Share and Price in Dutch Home Care: Market Power or Quality?. De Economist 158, 61–79 (2010). https://doi.org/10.1007/s10645-010-9137-2
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10645-010-9137-2