Do hospitals respond to rivals’ quality and efficiency? A spatial econometrics approach

Research output: Working paperDiscussion paper

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Publication details

DatePublished - Mar 2017
PublisherCentre for Health Economics, University of York
Place of PublicationYork, UK
Number of pages45
Original languageEnglish

Publication series

NameCHE Research Paper
PublisherCentre for Health Economics, University of York
No.144

Abstract

We investigate whether hospitals in the English National Health Service increase their quality (mortality, emergency readmissions, patient reported outcome, and patient satisfaction) or efficiency (bed occupancy rate, cancelled operations, and cost indicators) in response to an increase in quality or efficiency of neighbouring hospitals. We estimate spatial cross-sectional and panel data models, including spatial cross-sectional instrumental variables. Hospitals generally do not respond to neighbours’ quality and efficiency. This suggests the absence of spillovers across hospitals in quality and efficiency dimensions and has policy implications, for example, in relation to allowing hospital mergers.

    Research areas

  • Quality, EFFICIENCY, HOSPITALS, COMPETITION, Spatial econometrics

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