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The future of social care in The Netherlands: effectiveness of population-based financing

Hoogerdijk, J. (2016) The future of social care in The Netherlands: effectiveness of population-based financing.

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Abstract:On 1 January 2015 the new Law on Social Support (Wmo) was introduced in The Netherlands. This law made the municipalities responsible for an important part of the care for their citizens. The municipalities are free to purchase and arrange this care in the way they want. Where the old system used payment per hour of care, the municipalities can now introduce forms of payment for results. This paper analyses one form of payment for results: population based financing. In a system with population based financing, a care provider receives a fixed payment for supplying a certain population with a certain type of care. This form of financing can stimulate innovation and efficiency but can create monopolistic care suppliers, municipalities without any influence on the spending of their budget and patients without choice. This paper identifies the risks associated with the introduction of population based financing as mentioned in theory. Furthermore, the tender documents and contracts of four municipalities that chose to introduce population based financing are analysed to identify counter measures against the presence of the identified risks.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science, 88 social and public administration
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/71324
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