Location, quality and choice of hospital: Evidence from England 2002/3-2012/13
Research output: Working paper › Discussion paper
Date | Published - Jan 2016 |
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Publisher | Centre for Health Economics, University of York |
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Place of Publication | York, UK |
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Number of pages | 31 |
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Original language | English |
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Name | CHE Research Paper |
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Publisher | Centre for Health Economics, University of York |
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No. | 123 |
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We investigate (a) how patient choice of hospital for elective hip replacement is influenced by
distance, quality and waiting times, (b) differences in choices between patients in urban and rural
locations, (c) the relationship between hospitals’ elasticities of demand to quality and the number of
local rivals, and how these changed after relaxation of constraints on hospital choice in England in
2006. Using a data set on over 500,000 elective hip replacement patients over the period 2002/3 to
2012/13 we find that patients became more likely to travel to a provider with higher quality or lower
waiting times, the proportion of patients bypassing their nearest provider increased from 25% to
almost 50%, and hospital elasticity of demand with respect to own quality increased. By 2012/13
average hospital demand elasticity with respect to readmission rates and waiting times were 0.2
and 0.04. Providers facing more rivals had demand that was more elastic with respect to quality
and waiting times. Patients from rural areas have smaller disutility from distance.
- hospital, choice, quality, waiting times, distance, rurality
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