Multi-task Agency


Health Economics

  • The agency relationship in medicine typically operates through the performance of many tasks (as is, for example, vividly revealed in physician fee schedules). Different methods of remuneration tend to produce different mixes of these various tasks and different mixes of quality. The optimal solution as regards mix is elusive and methods of payment (such as fee-for-service or capitation) tend to be complemented by organizational, legal and social assumptions and values that reinforce the agency relationship.