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Does Hospital Competition Improve Efficiency? An Analysis of the Recent Market-Based Reforms to the English NHS

Cooper, ZN, Gibbons, S, Jones, S and McGuire, A (2010) Does Hospital Competition Improve Efficiency? An Analysis of the Recent Market-Based Reforms to the English NHS UNSPECIFIED. Centre for Economic Performance, London School of Economics and Political Science.

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Abstract

This paper uses a difference-in-difference estimator to test whether the introduction of patient choice and hospital competition in the English NHS in January 2006 has prompted hospitals to become more efficient. Efficiency was measured using hospitals’ average length of stay (LOS) for patients undergoing elective hip replacement. LOS was broken down into its two key components: the time from a patient’s admission until their surgery and the time from their surgery until their discharge. Our results illustrate that hospitals exposed to competition after a wave of market-based reforms took steps to shorten the time patients were in the hospital prior to their surgery, which resulted in a decrease in overall LOS. We find that hospitals shortened patients’ LOS without compromising patient outcomes or by operating on healthier, wealthier or younger patients. Our results suggest that hospital competition within markets with fixed prices can increase hospital efficiency.

Item Type: Monograph (UNSPECIFIED)
Authors :
AuthorsEmailORCID
Cooper, ZNUNSPECIFIEDUNSPECIFIED
Gibbons, SUNSPECIFIEDUNSPECIFIED
Jones, SUNSPECIFIEDUNSPECIFIED
McGuire, AUNSPECIFIEDUNSPECIFIED
Date : 1 January 2010
Uncontrolled Keywords : Hospital Competition, Market Structure, Prospective Payment, Incentive Structure
Related URLs :
Depositing User : Symplectic Elements
Date Deposited : 28 Mar 2017 13:24
Last Modified : 28 Mar 2017 13:24
URI: http://epubs.surrey.ac.uk/id/eprint/804168

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