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Channeling in Health Care

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Please help me find an example of channeling in the health care market.

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Solution Summary

The solution provides four examples of channeling in the health care market, including a discussion on each example.

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Hi,

Interesting question! I located four examples of channeling in the health care market for you to consider. Let's take a CLOSER look.

RESPONSE:

1. Please help me find an example of channeling in the healthcare market in 150 words or more.

The influence of insurers ability to move market share by channeling patients to preferred hospitals or physicians has a much larger effect. The first two examples address these forms of channeling in healthcare:

EXAMPLE 1: The first example of channeling in healthcare is insurers who channeling patients to preferred hospitals as a potential instrument for bargaining power and moving market share.

For example, Dutch health insurers define channeling patients to preferred hospitals as a potential instrument in the bargaining process. Polman (2006) points out, however, that health insurers still have major concerns about their bargaining power in the future, as their ability to channel patients to preferred hospitals may be constrained by legislation. There has been some considerable debate in the Dutch parliament about the question to which extent health insurers are allowed to restrict their enrollees' freedom of choice. It is important to stress, that putting constraints on the ability of health insurers to 'channel' patients may have major implications for the Dutch health system. For example, when health insurers are unable to channel their patients, they are unable to offer payments in kinds contracts with lower premiums and limited provider choice. Hence, the ...

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