Benefits of queues Queues may limit moral hazard E.g.long wait times deter people who do not actually need the costly procedure In a 198os mail survey of patients waiting for orthopedic surgery at one UK hospital,only 48%of the 757 people still wanted the surgery Unlike price rationing,queues treat the rich and poor equally Promotes the equity goal of Beveridge systems Bhattacharya,Hyde and Tu-HealthEconomics
Bhattacharya, Hyde and Tu – Health Economics Benefits of queues Queues may limit moral hazard E.g. long wait times deter people who do not actually need the costly procedure In a 1980s mail survey of patients waiting for orthopedic surgery at one UK hospital, only 48% of the 757 people still wanted the surgery Unlike price rationing, queues treat the rich and poor equally Promotes the equity goal of Beveridge systems
A model of queues Suppose there are two types of patients: U-patients:those for whom the surgery would be very useful W-patients:those for whom the surgery would only be marginally useful Let Up represent poor patients for whom surgery would be useful Surgeon Bhattacharya,Hyde and Tu-HealthEconomics
Bhattacharya, Hyde and Tu – Health Economics A model of queues Suppose there are two types of patients: U-patients:those for whom the surgery would be very useful W-patients: those for whom the surgery would only be marginally useful Let Up represent poor patients for whom surgery would be useful