By Ricardo A. Bitran
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Additional info for A supply-demand model of health care financing with an application to Zaire: a training tool
The health center and the competitors are characterized by their prices. In addition, each competitor is characterized by its distance from the health center. The user of the model must specify the radius of the market, the providers' prices, and the distance from each competitor to the health center. The population is assumed to be distributed uniformly within five population rings, as shown in figure 3-1. The user of the model must specify the total population living in the market as well as the percentage living within each of the five population rings in order to allow simulations based on different assumptions about the population density and the travel distance.
1 Figure 3-1. Market for Ambulatory Care Health Care Demand Curative Care People with a health problem must decide whether or not to seek care outside the home; those who decide to seek outside care must choose a provider. The consumer's decision tree is illustrated in figure 3-2. Figure 3-2. Consumer Decision Tree The number of people in population ring r choosing provider j for a given health service (for example, curative care) (Qrj) can be computed by multiplying the number of people with a health problem within a given time period living in r (Hr) times the proportion (or probability of) seeking care (ProbSeek)r times the proportion seeking care that chooses that particular provider (ProbChoose)rj.
13. For example, see Dor, Gertler, and van der Gaag 1987. 14. Some may argue that a greater distance may not necessarily translate into a higher travel time because more distant consumers choose faster means of transportation. While that is possible, it is assumed here that people's travel speed is constant regardless of their location. Hence a greater distance is assumed to result in a longer travel time. Page 13 3 Ambulatory Care The last section provided an overview of the model's logic. This segment describes in detail the ambulatory care component of the model.
A supply-demand model of health care financing with an application to Zaire: a training tool by Ricardo A. Bitran