Competition in French hospital: Does it impact the patient management in healthcare?

Carine Milcent

PSE-Ecole d'économie de Paris (Postprint) from HAL

Abstract: This research paper examines changes in patient care management in acute care hospitals between 2001 and 2011. During this time, there were two opposing factors at play: the competition effect of the reform and the policymaker's decision to reduce public hospitals across France. By studying the trends, it is evident that there has been a significant overall shift in patient care management during this period. This change could be attributed to the global competition effect and the concentration of in-patients in specific public facilities. Through the difference-in-difference method, the study analyzed time variations in the intensity of local competition. It was found that local competition had a negligible impact on patient care management. Additionally, the study revealed that there was a significant positive competition effect on high-technical procedures for the private sector, which is in line with the market segment where private sector hospitals have a leadership position and the pro-competitive reform intensified this position. The study also uncovered a negative competition effect on the length of stay for public hospitals. Prior to the implementation of the DRG-based payment reform, public sector hospitals were paid a global budget. However, after the reform was implemented, they had to shorten the length of stay to increase the number of stays. For-profit hospitals have always been paid based on the number of stays. The results are robust and consistent when alternative measures of local competition are used.

Keywords: Competition; Hospital ownership; Policy evaluation; Length of stay; High-tech procedure; Difference-in-difference; Measure of market structure; Heart attack (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-com and nep-hea
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-04568345v1
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Published in The B.E. journal of economic analysis & policy, 2024, 4 (1), pp.89. ⟨10.58567/jea04010003⟩

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Related works:
Working Paper: Competition in French hospital: Does it impact the patient management in healthcare? (2024)
Working Paper: Competition in French hospital: Does it impact the patient management in healthcare? (2021)
Working Paper: Competition in French hospital: Does it impact the patient management in healthcare? (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:halshs-04568345

DOI: 10.58567/jea04010003

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