Hospital Quality Competition Under Fixed Prices – Centre for Health Economics – November 2012

Posted on November 21, 2012. Filed under: Health Economics | Tags: |

Hospital Quality Competition Under Fixed Prices – Centre for Health Economics – November 2012

Hugh Gravelle, Rita Santos, Luigi Siciliani, Rosalind Goudie

Extract:

“The relationship between the quality of health care and the extent of competition amongst providers has been the subject of intense policy interest and debate. As part of the ESHCRU programme we are undertaking a set of related investigations into this relationship in the hospital sector, in primary care (general practices) and in social care. In this initial report on competition amongst hospitals we

review the theoretical economics literature on competition and quality,
briefly describe the relevant empirical literature on
o whether choice of hospital is influenced by quality
o whether greater competition is associated with higher quality
report on preliminary empirical analyses of
o the correlations amongst 16 hospital quality measures
o the association between distance based measures of competition and these quality measures.

We conclude by describing our future research suggested by the theoretical and empirical literature reviews and our initial empirical analyses.”

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