Health Care Networking and Information

―Inter-Organization Collaboration and the Transaction Cost Approach―

Abstract

My research focuses on the importance of inter-organization collaboration in view of efficient medical resource allocation. The discussions concern the following:

(1) I point out that there are 4 different types of information asymmetries between physicians and patients and among medical institutions that cause failure in efficient medical resource allocations.

(2) I point out that these information asymmetries are caused by the fact that medical service is transacted in the market ‘mode'.

(3) I discuss the merit and the demerit of the two ‘modes'-market and planning， and I propose that medical service should be supplied in the intermediate ‘mode' which has the merit of the market ‘mode' as well as the planning ‘mode'.

(4) I point out that ① incentives are more effective than regulations and ② information linkage among institutions and between physicians and patients are very important in view of public intervention that shifts the existing health care system to the one under the intermediate 'mode'.