Should developing countries ban dual practice by physicians? Analysis under mixed hospital competition, Health Economics, 2022 (with Indranil Dutta and Mario Pezzino)
Growth and welfare in mixed health system financing with physician dual practice in a developing economy: a case of Indonesia, International Journal of Health Economics and Management, 2020 (with Barış Alpaslan and King Yoong Lim)
Dual Practice in China
Abstract:
Recently, after the 2009 healthcare reform, China has encouraged physicians to undertake dual practice. However, despite this encouragement from the government, we find that the number of physicians engaged in dual practice is almost negligible. This is in contrast to many other countries where physicians undertake dual practice. Therefore we employ the principal/agent framework to study this puzzle and analyse the optimal contract between public hospitals and public employed physicians allowing dual practice. We show that undertaking dual practice may benefit physicians, but at the expense of public hospitals; this may explain why public hospital managers could prevent the implementation of the reform. We propose that quality regulation in the private sector may counteract the negative effect of dual practice on the public hospital and therefore, improve physician's participation to undertake dual practice.