University of Twente Student Theses


Contracting model for long-term care

Pelle, S.H. (2022) Contracting model for long-term care.

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Abstract:On the first of October 2020, the court of Den Haag decided that five Zorgkantoren (buying organisations) used invalid methods of reimbursing healthcare providers (Rechtbank Den Haag, 2020). Along with the expected cost growth of 2.8% per year (RIVM, 2020), it was the motive for Menzis to start this research on contracting models, that could assure affordable and available long-term care in the present and the future. After establishing that the Dutch long-term healthcare market is complex, due to its imperfect market conditions, laws and legislations and conflicting interest. It became apparent that many factors affected the implementation of a contracting method, this resulted in the research question: What contracting form could a buying organisation implement in a healthcare service triad? This research used the method of a literature review to understand the characteristics of the Dutch long-term healthcare market, as well as theories on contracting in a service triad. Experts interviews and action research were employed to provide insights into the interest of all three actors, buyer, supplier and client. Theory and practical insights jointly yielded a set of principles that could be used in a future contracting model. Although the literature suggested that within a service triad, there would be contrasting interests between the actors (Sengupta et al., 2018). In practice based on the interviews, Menzis and most healthcare providers had the same goal, delivering excellent care and service to the client. Nevertheless, it is still important, to install an appropriate mode of contracting, to align the interest of all actors present in the service triad. Although there is not one optimal form of contracting. This research recommends a contracting model which incorporates both the honorarium systematic and a form of outcome-based contracting through the use of KPIs. This model is complemented by a social contract, in which common norms, values and goals have been agreed upon. Together with collaboration between the buying organisation and supplier and selective contracting, this contracting model could secure affordable and available long-term care in the present and the future.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
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