Research output: Working paper › Discussion paper
Does hospital competition improve efficiency? The effect of the patient choice reform in England. / Longo, Francesco; Siciliani, Luigi; Moscelli, Giuseppe; Gravelle, Hugh Stanley Emrys.
York, UK : Centre for Health Economics, University of York, 2017. p. 1-27 (CHE Research Paper; No. 149).Research output: Working paper › Discussion paper
}
TY - UNPB
T1 - Does hospital competition improve efficiency? The effect of the patient choice reform in England
AU - Longo,Francesco
AU - Siciliani,Luigi
AU - Moscelli,Giuseppe
AU - Gravelle,Hugh Stanley Emrys
PY - 2017/11
Y1 - 2017/11
N2 - We use the 2006 relaxation of constraints on patient choice of hospital in the English NHS to investigate the effect of hospital competition on dimensions of efficiency including indicators of resource management (admissions per bed, bed occupancy rate, proportion of day cases, cancelled elective operations, proportion of untouched meals) and costs (cleaning services costs, laundry andlinen costs, reference cost index for overall and elective activity). We employ a quasi difference-indifference approach and estimate seemingly unrelated regressions and unconditional quantile regressions with data on hospital trusts from 2002/03 to 2010/11. Our findings suggest that increased competition had mixed effects on efficiency. An additional equivalent rival increased admissions per bed and the proportion of day cases by 1.1 and 3.8 percentage points, and reduced the proportion of untouched meals by 3.5 percentage points, but it also increased the number of cancelled elective operations by 2.6%. Unconditional quantile regression results indicate that hospitals with low efficiency, as measured by fewer admissions per bed and a smaller proportion of day cases, are more responsive to competition.
AB - We use the 2006 relaxation of constraints on patient choice of hospital in the English NHS to investigate the effect of hospital competition on dimensions of efficiency including indicators of resource management (admissions per bed, bed occupancy rate, proportion of day cases, cancelled elective operations, proportion of untouched meals) and costs (cleaning services costs, laundry andlinen costs, reference cost index for overall and elective activity). We employ a quasi difference-indifference approach and estimate seemingly unrelated regressions and unconditional quantile regressions with data on hospital trusts from 2002/03 to 2010/11. Our findings suggest that increased competition had mixed effects on efficiency. An additional equivalent rival increased admissions per bed and the proportion of day cases by 1.1 and 3.8 percentage points, and reduced the proportion of untouched meals by 3.5 percentage points, but it also increased the number of cancelled elective operations by 2.6%. Unconditional quantile regression results indicate that hospitals with low efficiency, as measured by fewer admissions per bed and a smaller proportion of day cases, are more responsive to competition.
KW - competition
KW - efficiency
KW - choice
KW - hospital
KW - difference-in-difference
M3 - Discussion paper
T3 - CHE Research Paper
SP - 1
EP - 27
BT - Does hospital competition improve efficiency? The effect of the patient choice reform in England
PB - Centre for Health Economics, University of York
ER -