Competition Between Public and Private Maternity Care Providers in France: Evidence on Market Segmentation

Herrera-Araujo, D.; and Lise Rochaix

Health, Econometrics and Data Group (HEDG) Working Papers from HEDG, c/o Department of Economics, University of York

Abstract: The French market for hospital care is shared by public and private providers. In addition to covering a number of mandates usually not undertaken by the private sector such as training, research, and disease prevention, public hospitals are required to provide basic care across the French territory. To investigate the existence of market segmentation between public and private care providers, we focus on maternity care and first examine to what extent public and private maternity units substitute each other on an extensive margin, to then analyze how competition plays out on an intensive margin. Consistent with the public mandate, our findings indicate that, after a private unit closure, public maternity units are less likely to exit a low-populated area than a high-populated area. In addition, we find evidence of an asymmetric intensive margin substitution between private and public maternity units. Maternity users tend to substitute private units (non for-profit and for-profit) for public units more often than the reverse.

Keywords: maternity units; substitution; demand estimation; public-private (search for similar items in EconPapers)
JEL-codes: D03 D12 L13 L22 L81 (search for similar items in EconPapers)
Date: 2019-07
New Economics Papers: this item is included in nep-com, nep-hea and nep-ind
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Persistent link: https://EconPapers.repec.org/RePEc:yor:hectdg:19/11

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