Currently Dr. Kaarboe is working as an associate professor in economics at Department of Economics, University of Bergen, Norway. He also serves as the research director of the research group Health Economics Bergen (HEB).

Dr. Kaarboe's research has mainly been focused on developing and implementing financing models in the health care sector. This includes i) theoretical work, ii) developing remuneration models at the nation level, and iii) developing and implementing remuneration models at the regional level in Norway. He has also been involved in a WHO-project on implementing decentralization in health care. Recently Dr. Kaarboe was the Principal Investigator (PI) for a project on evaluation of a Norwegian hospital reform. This reform concerns a major change in the governance structure of the hospital sector in Norway. Currently Dr. Kaarboe is the PI of a project on prioritization in the hospital sector. The main purpose of the project is to develop a surveillance system to monitor prioritization of hospital patients. One part of the project includes a comparative analysis of prioritization practices in Norway and Scotland. He is also involved in a project about the relationship between social capital and health.

The health economics group in Bergen is one of the larger health research groups in Europe. The research group is based within economics and business administration but emphasizes multidisciplinary research cooperation with medicine, health care institutions and other social sciences. It has a broad international (European) network. Well known health economics like Professors Andrew Jones, (York), Carol Propper (Imperial College/Bristol University), John Cairns (London School of Hygiene and Tropical Medicine), Matt Sutton (University of Manchester), Sherman Folland (Oakland University) and Maarten Lindeboom (Vrije University) are all affiliated with the health group.