How to Cover the Medical Costs of Hospitalization: a Theoretical Model Based on the Household Willingness to Pay

Abstract

Covering medical costs is very important, in order to solve the various financial problems that limit the users’ access to health care (patients attending the public hospitals). Designing a new model of financing system by using an additional levy to the local tax revenue is one of the solutions to these problems. This theoretical model optimizes the amount of financial participation of the users or "pfu" compared to the direct costs of hospital care starting from the willingness to pay revealed by the household. The criterion of morbidity for predicting the staffing of a part from the tax amount was chosen so that we can handle most of the users of the hospital. Firstly, the model shows that our new system could reduce the direct costs of care paid by users, and secondly, it also helps provide an additional resource in the supplementary budget of hospitals.

Keywords

• Willingness-to-pay or WTP
• Financing
• Financial participation of the users
• Covering of medical costs
• Access to health care