A comparison of existing and alternative competitive bidding systems for indigent medical care

Jon B. Christianson; Kenneth R. Smith; Diane G. Hillman

doi:10.1016/0277-9536(84)90075-3

A comparison of existing and alternative competitive bidding systems for indigent medical care

Jon B. Christianson, Kenneth R. Smith, Diane G. Hillman

Research output: Contribution to journal › Article › peer-review

6 Scopus citations

Abstract

Competitive bidding is gaining in popularity as a means of containing costs in indigent medical care programs. The economic implications of the bidding systems employed by Arizona and California are discussed in light of the existing literature. Two alternative bidding approaches are proposed for consideration by policymakers-the sealed bid 'Vickrey' auction and the 'ascending Dutch' auction. While the incentives it contains for providers are not optimal, the ascending Dutch auction has the greatest potential for effective implementation since it accomodates the realities of public sector budget constraints and political pressures for direct control over program expenditures.

Original language	English (US)
Pages (from-to)	599-604
Number of pages	6
Journal	Social Science and Medicine
Volume	18
Issue number	7
DOIs	https://doi.org/10.1016/0277-9536(84)90075-3
State	Published - 1984
Externally published	Yes

Bibliographical note

Funding Information:
Ronald Vogel and the financial support of the John A. Hartford Foundation. New York City. NY and the Flinn Foundation. Phoenix. AZ.

Copyright:
Copyright 2014 Elsevier B.V., All rights reserved.

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10.1016/0277-9536(84)90075-3

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abstract = "Competitive bidding is gaining in popularity as a means of containing costs in indigent medical care programs. The economic implications of the bidding systems employed by Arizona and California are discussed in light of the existing literature. Two alternative bidding approaches are proposed for consideration by policymakers-the sealed bid 'Vickrey' auction and the 'ascending Dutch' auction. While the incentives it contains for providers are not optimal, the ascending Dutch auction has the greatest potential for effective implementation since it accomodates the realities of public sector budget constraints and political pressures for direct control over program expenditures.",

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note = "Funding Information: Ronald Vogel and the financial support of the John A. Hartford Foundation. New York City. NY and the Flinn Foundation. Phoenix. AZ. Copyright: Copyright 2014 Elsevier B.V., All rights reserved.",

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AU - Smith, Kenneth R.

AU - Hillman, Diane G.

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PY - 1984

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AB - Competitive bidding is gaining in popularity as a means of containing costs in indigent medical care programs. The economic implications of the bidding systems employed by Arizona and California are discussed in light of the existing literature. Two alternative bidding approaches are proposed for consideration by policymakers-the sealed bid 'Vickrey' auction and the 'ascending Dutch' auction. While the incentives it contains for providers are not optimal, the ascending Dutch auction has the greatest potential for effective implementation since it accomodates the realities of public sector budget constraints and political pressures for direct control over program expenditures.

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A comparison of existing and alternative competitive bidding systems for indigent medical care

Abstract

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