Research Article | | Peer-Reviewed

The Financing of Public Hospitals in Senegal: Taking into Account the Anti-selection

Received: 28 May 2025     Accepted: 23 June 2025     Published: 28 July 2025
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Abstract

The objective of our study was to analyze the anti-selection that exists between the state and public hospitals in Senegal. The use of a theoretical model to highlight hospital regulation has led to a number of important results. Indeed, the optimal solution consists in introducing a distortion in the cost reduction effort required to achieve an arbitrage between productive efficiency and the extraction of the hospital’s rent. The use of a menu of non-linear contracts for hospital funding is consistent with a cost reimbursement policy (such as the overall envelope policy) while a menu of linear contracts is modelled on the fixed-price pricing system (for example, by pathology or activity).

Published in International Journal of Health Economics and Policy (Volume 10, Issue 3)
DOI 10.11648/j.hep.20251003.12
Page(s) 90-99
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2025. Published by Science Publishing Group

Keywords

Public Hospital, Financing, Information Asymmetry, Anti-selection, Senegal

References
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[3] Baron D. P., Myerson R. B. (1982). «Regulating a monopolist with unknown costs», Econometrica 50(4): 911-930.
[4] Bloch L., Ricordeau P. (1996). «The regulation of the health system in France», French Review of Economy 11(1): 87-146.
[5] Cash E., Cash R. and Dupliet C. (2011). « La réactivité des établissements de santé face aux incitations tarifaires ». Études et Recherche, N°106, DREES.
[6] Chone P., Lesur R. (2002). «Heterogeneity of health facilities and pricing by pathology», Review of Political Economy 112(1): 65- 76.
[7] De Pouvourville G. (2006). «The conditions for fair competition between the public and private sectors », Hospital Review of France, number 508: 12-15.
[8] Dormont B., Milcent C. (2004). «Hospital pricing: taking into account the heterogeneities », Economics and Statistics Affairs, number 74: 48-80.
[9] Dormont B., Milcent C. (2011). «How to evaluate the productivity and efficiency of public and private hospitals? The challenges of price convergence», Economics et Statistics 455-456: 143-173.
[10] Henriet D. (2003). «Prospective payments, pathology pricing, competition by comparison», Mission in pricing by activity, Ministry of Health, Family and Disabled Persons, Directorate of Hospitalization and Organization of Care, France.
[11] Jacobzone S. (1995). «The contributions of industrial economics to define the economic strategy for managing the public hospital sector », Social Sciences and health 13(1): 5-46.
[12] Jacobzone S., Rochaix L. (1997). «The induced demand hypothesis: An economic assessment », Economy and Predictions, number 129-130: 25-36.
[13] Keeler E. B. (1990). «What proportion of hospital cost differences is Justifiable ? », Journal of Health Economics 9: 359-365.
[14] Malcomson J. M. (2007). «Hospital cost differences and payment by results », Cambridge University Press, Health Economics, Policy and Law 2: 429-433.
[15] Mosse P. (2004). «The Economy of the hospital system. The delicate problem of incentive», Communication presented at the conference Economics of French and Russian health systems, Moscow, December.
[16] Mougeot M. (2000). «Hospital pricing: from the global budgeting to competition by comparison », Economics and Statistics Affairs, number 58: 195-214.
[17] Mougeot M., Naegelen F. (1998). «Asymmetry of information and hospital financing. A comparison of the modes of organization of the health system », Economic Review 49(5): 1323-1343.
[18] Or Z., Renaud T., Com-Ruelle L. (2009). «Are the differences in hospital costs justifiable? Thoughts on tariff convergence between the public and private sectors in France », Working paper, number 25, IRDES: 31.
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  • APA Style

    Ndiaye, M. (2025). The Financing of Public Hospitals in Senegal: Taking into Account the Anti-selection. International Journal of Health Economics and Policy, 10(3), 90-99. https://doi.org/10.11648/j.hep.20251003.12

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    ACS Style

    Ndiaye, M. The Financing of Public Hospitals in Senegal: Taking into Account the Anti-selection. Int. J. Health Econ. Policy 2025, 10(3), 90-99. doi: 10.11648/j.hep.20251003.12

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    AMA Style

    Ndiaye M. The Financing of Public Hospitals in Senegal: Taking into Account the Anti-selection. Int J Health Econ Policy. 2025;10(3):90-99. doi: 10.11648/j.hep.20251003.12

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  • @article{10.11648/j.hep.20251003.12,
      author = {Mansoum Ndiaye},
      title = {The Financing of Public Hospitals in Senegal: Taking into Account the Anti-selection
    },
      journal = {International Journal of Health Economics and Policy},
      volume = {10},
      number = {3},
      pages = {90-99},
      doi = {10.11648/j.hep.20251003.12},
      url = {https://doi.org/10.11648/j.hep.20251003.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.hep.20251003.12},
      abstract = {The objective of our study was to analyze the anti-selection that exists between the state and public hospitals in Senegal. The use of a theoretical model to highlight hospital regulation has led to a number of important results. Indeed, the optimal solution consists in introducing a distortion in the cost reduction effort required to achieve an arbitrage between productive efficiency and the extraction of the hospital’s rent. The use of a menu of non-linear contracts for hospital funding is consistent with a cost reimbursement policy (such as the overall envelope policy) while a menu of linear contracts is modelled on the fixed-price pricing system (for example, by pathology or activity).},
     year = {2025}
    }
    

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    T1  - The Financing of Public Hospitals in Senegal: Taking into Account the Anti-selection
    
    AU  - Mansoum Ndiaye
    Y1  - 2025/07/28
    PY  - 2025
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    T2  - International Journal of Health Economics and Policy
    JF  - International Journal of Health Economics and Policy
    JO  - International Journal of Health Economics and Policy
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    AB  - The objective of our study was to analyze the anti-selection that exists between the state and public hospitals in Senegal. The use of a theoretical model to highlight hospital regulation has led to a number of important results. Indeed, the optimal solution consists in introducing a distortion in the cost reduction effort required to achieve an arbitrage between productive efficiency and the extraction of the hospital’s rent. The use of a menu of non-linear contracts for hospital funding is consistent with a cost reimbursement policy (such as the overall envelope policy) while a menu of linear contracts is modelled on the fixed-price pricing system (for example, by pathology or activity).
    VL  - 10
    IS  - 3
    ER  - 

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Author Information
  • Department of Training, African Center for Graduate Studies in Management, Dakar, Senegal

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