Abstract

In this study, we examine the effect of cross-border healthcare with public health insurance. We consider the effect on healthcare quality as well as income redistribution and Public health insurance schemes. We find that the implementation of cross-border healthcare induces governments to increase reimbursements to hospitals, and improves the quality of hospitals. Furthermore, a large reduction in non-monetary friction for cross-border healthcare weakens Income redistribution in the country in which a proportion of patients receive cross-border Healthcare services.

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