|This centre is a member of The LSE Research Laboratory [RLAB]: CASE | CEE | CEP | FMG | SERC | STICERD||Cookies?|
Paper No' CEPDP0988: | Full paper
Save Reference as: BibTeX File | EndNote Import File
Keywords: Hospital Competition; Market Structure, Prospective Payment, Incentive Structure
JEL Classification: C21; I18; L1; R0
Is hard copy/paper copy available? YES - Paper Copy Still In Print.
This Paper is published under the following series: CEP Discussion Papers
Share: Google Bookmarks | Facebook | Twitter
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.
Copyright © CEP & LSE 2003 - 2014 | LSE, Houghton Street, London WC2A 2AE | Tel: +44(0)20 7955 7673 | Email: email@example.com | Site updated 26 November 2014