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Dynamic Pricing Model of Medical Services in Public Hospitals in China


Affiliations
1 College of Management and Economics, Tianjin University, Tianjin, China
2 Development and Planning Department, Southern Medical University, Guangzhou, China
3 College of Management and Economics, Tianjin University, Tianjin, India
 

For improving the current pricing mode of medical services, the present study seeks to explore the pricing elements and processes, and establish the dynamic pricing model of involving both the government and hospitals. The pricing process and mathematical model shows the logical relationships between medical prices and pricing elements. The causal relationship model reveals how to accomplish dynamic equilibrium between elements. The simulation model has been built based on system dynamics theory. Results of the simulation and sensitivity tests, show that different grades of hospitals while applying the pricing model may better perform their respective responsibilities and continuously improve core strengths.

Keywords

Dynamic Pricing Model, Medical Services, Public Hospitals, System Dynamics.
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  • Dynamic Pricing Model of Medical Services in Public Hospitals in China

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Authors

Yabin Li
College of Management and Economics, Tianjin University, Tianjin, China
Xiaohui Xing
Development and Planning Department, Southern Medical University, Guangzhou, China
Congdong Li
College of Management and Economics, Tianjin University, Tianjin, India

Abstract


For improving the current pricing mode of medical services, the present study seeks to explore the pricing elements and processes, and establish the dynamic pricing model of involving both the government and hospitals. The pricing process and mathematical model shows the logical relationships between medical prices and pricing elements. The causal relationship model reveals how to accomplish dynamic equilibrium between elements. The simulation model has been built based on system dynamics theory. Results of the simulation and sensitivity tests, show that different grades of hospitals while applying the pricing model may better perform their respective responsibilities and continuously improve core strengths.

Keywords


Dynamic Pricing Model, Medical Services, Public Hospitals, System Dynamics.

References





DOI: https://doi.org/10.18520/cs%2Fv109%2Fi8%2F1437-1444