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Table 1 The differences between competitive bidding and service vouchers as procurement mechanisms

From: Assessing the effects of price regulation and freedom of choice on quality: evidence from the physiotherapy market

Process

Competitive bidding

Service voucher

Price

Defined by firms in their tenders

Regulated by Kela

Minimum quality and other criteria

Controlled by Kela

Controlled by Kela

Excess quality

Scored during the procurement process

Not scored or evaluated during registration

Contracting

Completed with firms based on quality-price ratio

Completed with all firms fulfilling minimum criteria

Patient choice

Patients may choose a local provider that has a contract with Kela

Patients may choose a local provider that has a contract with Kela

Out-of-pocker payments required

No

No