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NHS REFORMS:
CEP Research Evidence and Policy Recommendations

13 June 2011

CEP has produced rigorous research evidence on the impact of hospital competition, pay regulation and management performance on quality, productivity and equity in the NHS. Policy needs to be informed by evidence. Below is a summary of some of the key research by CEP staff, which can inform the current NHS reform debate and should influence policy development in the NHS. CEP economists are available for interviews and discussions with the media.

Summary of evidence (see summaries of key research below):
  • NHS hospital competition can improve quality, lower death rates and improve productivity.

  • Hospital competition can improve hospital management.

  • The Labour government made huge progress in improving quality, reducing waiting times and raising patient satisfaction between 2000 and 2009.

  • Pay regulation has led to higher death rates across England.
Policy Implications:
  • Andrew Lansley's proposals had five flaws:
    1. The pace was too fast.
    2. Structural changes cost money; they don't save it.
    3. They introduced price competition, when they should have preserved strictly quality competition.
    4. They ignored the value of good management.
    5. They placed too much power in the hands of untested GP commissioners.

  • The NHS requires more hospital competition, not less to improve quality and productivity (See: In brief: Competition in the public sector: good for the goose, good for the gander?, Zack Cooper, June 2011, CentrePiece, Volume 16 Issue 1, Summer 2011);

  • The NHS needs to focus on creating financial incentives for hospitals and commissioners to raise performance.

  • The NHS needs to measure performance more aggressively and benchmark hospitals' quality.
KEY CENTRE FOR ECONOMIC PERFORMANCE CONTACTS ON HEALTH ECONOMICS AND NHS POLICY:

Dr. Zack Cooper
Tel : 077 258 98597 ; email: z.cooper@lse.ac.uk
Zack Cooper's Webpage

Professor John Van Reenen
email: j.vanreenen@lse.ac.uk
John Van Reenen's Webpage

Further information
See summaries of key CEP research on NHS Policy

Related Links:
In brief: Competition in the public sector: good for the goose, good for the gander?, June 2011, CentrePiece, Volume 16 Issue 1, Summer 2011
The NHS White Paper: Evolution or Revolution, Zack Cooper
Progress Made in the NHS from 2000-2010, Zack Cooper and Alistair McGuire

Read more... NHS REFORMS