Extending Choice In English Health Care: The implications of the economic evidence

Simon Burgess (), Carol Propper and Deborah Wilson

No 5328, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Extending choice in health care is currently popular amongst English, and other, politicians. Those promoting choice make an appeal to a simple economic argument. Competitive pressure helps make private firms more efficient and consumer choice acts as a major driver for efficiency. Giving service users the ability to choose applies competitive pressure to health care providers and, analogously with private markets, they will raise their game to attract business. The paper subjects this assumption to the scrutiny provided by a review of the theoretical and empirical economic evidence on choice in health care. The review considers several interlocking aspects of the current English choice policy: competition between hospitals, the responsiveness of patients to greater choice, the provision of information and the use of fixed prices. The paper concludes that there is neither strong theoretical nor empirical support for competition, but that there are cases where competition has improved outcomes. The paper ends with a discussion of the implications of this literature for policies to promote competition in the English NHS.

Keywords: Competition; Choice; Health care; English nhs reforms (search for similar items in EconPapers)
JEL-codes: I11 I18 (search for similar items in EconPapers)
Date: 2005-11
New Economics Papers: this item is included in nep-com
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Citations: View citations in EconPapers (16)

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