Global Health Donors Viewed as Regulators of Monopolistic Service Providers: Lessons from Regulatory Literature - Working Paper 424

Controlling healthcare costs while promoting maximum health impact in the recipient countries is one the biggest challenges for global health donors. This paper views global health donors as the regulators of monopolistic service providers, and explores potential optimal fund payment systems under asymmetric information. It provides a summary and assessment of the prevailing optimal price regulation designs for monopolistic service providers. A set of non-Bayesian approaches that are relevant and applicable for the global health donors are discussed. It also reviews incentive contracting experience between the public and private sectors.