Selecting Healthcare Providers for Bundled Payments in Healthcare Services

34 Pages Posted: 16 Dec 2016 Last revised: 30 Oct 2019

See all articles by Seokjun Youn

Seokjun Youn

University of Arizona - Eller College of Management

Anupam Agrawal

Texas A&M University

Subodha Kumar

Temple University - Department of Marketing and Supply Chain Management

Chelliah Sriskandarajah

Texas A&M University

Date Written: December 15, 2016

Abstract

Identification of competitive healthcare providers is an important issue for successful operation of a bundled payment reimbursement program. We develop a healthcare provider selection framework via data envelopment analysis (DEA) and combinatorial auction (CA). Our goal is to cover target regions with adequate numbers of healthcare providers so as to optimally deploy a bundled payment program across these regions. Our methodology balances bid prices and performance of applicants to cover the entire regions in an equitable manner, allows for provider preferences in selecting the bundle of services, and determines winners taking into account service quality, efficiency and the price of the bundles. Our work provides a practical and systematic selection procedure for payers compared to the extant subjective selection methods.

Keywords: Healthcare, Bundled Payment, Combinatorial Auctions, Winer Determination, Data Envelopment Analysis

Suggested Citation

Youn, Seokjun and Agrawal, Anupam and Kumar, Subodha and Sriskandarajah, Chelliah, Selecting Healthcare Providers for Bundled Payments in Healthcare Services (December 15, 2016). Mays Business School Research Paper No. 2886066; Fox School of Business Research Paper. Available at SSRN: https://ssrn.com/abstract=2886066 or http://dx.doi.org/10.2139/ssrn.2886066

Seokjun Youn

University of Arizona - Eller College of Management ( email )

1130 E Helen St., McClelland Hall 430CC
Tucson, AZ 85721
United States
5206260493 (Phone)
85721 (Fax)

HOME PAGE: http://https://eller.arizona.edu/people/seokjun-youn

Anupam Agrawal

Texas A&M University ( email )

Langford Building A
798 Ross St.
College Station, TX 77843-3137
United States

Subodha Kumar

Temple University - Department of Marketing and Supply Chain Management ( email )

Philadelphia, PA 19122
United States

Chelliah Sriskandarajah (Contact Author)

Texas A&M University ( email )

Langford Building A
798 Ross St.
77843-3137

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