Research output: Working paper › Discussion paper
Does a hospital’s quality depend on the quality of other Hospitals? A spatial econometrics approach to investigating hospital quality competition. / Gravelle, Hugh Stanley Emrys; Santos, Rita; Siciliani, Luigi.
York, UK : Centre for Health Economics, University of York, 2013. (CHE Research Paper; No. 82).Research output: Working paper › Discussion paper
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TY - UNPB
T1 - Does a hospital’s quality depend on the quality of other Hospitals? A spatial econometrics approach to investigating hospital quality competition
AU - Gravelle, Hugh Stanley Emrys
AU - Santos, Rita
AU - Siciliani, Luigi
PY - 2013/1
Y1 - 2013/1
N2 - We examine whether a hospital’s quality is affected by the quality provided by otherhospitals in the same market. We first set out a theoretical model with regulatedprices which specifies conditions on demand and cost functions which determinewhether a hospital will have higher quality when its rivals have higher quality. Wethen apply spatial econometric methods to a sample of English hospitals in 2009-10 and a set of 16 quality measures including mortality rates, readmission, revision and redo rates and three patient reported indicators to examine to examine the relationship between the quality of hospitals. We find that a hospital’s quality is positively associated with the quality of its rivals for seven out of the sixteen quality measures and that in no case is there a negative association. In those cases where there is a positive association, an increase in rivals’ quality by 10% increases a hospital’s quality by 1.7% to 2.9%
AB - We examine whether a hospital’s quality is affected by the quality provided by otherhospitals in the same market. We first set out a theoretical model with regulatedprices which specifies conditions on demand and cost functions which determinewhether a hospital will have higher quality when its rivals have higher quality. Wethen apply spatial econometric methods to a sample of English hospitals in 2009-10 and a set of 16 quality measures including mortality rates, readmission, revision and redo rates and three patient reported indicators to examine to examine the relationship between the quality of hospitals. We find that a hospital’s quality is positively associated with the quality of its rivals for seven out of the sixteen quality measures and that in no case is there a negative association. In those cases where there is a positive association, an increase in rivals’ quality by 10% increases a hospital’s quality by 1.7% to 2.9%
KW - Quality
KW - regulated prices
KW - hospitals
KW - competition
KW - spatial econometrics
M3 - Discussion paper
T3 - CHE Research Paper
BT - Does a hospital’s quality depend on the quality of other Hospitals? A spatial econometrics approach to investigating hospital quality competition
PB - Centre for Health Economics, University of York
CY - York, UK
ER -