Cut off from new competition: Threat of entry and health care quality

Eduard Brüll, Davud Rostam-Afschar and Oliver Schlenker

No 41, Working Papers from University of Konstanz, Cluster of Excellence "The Politics of Inequality. Perceptions, Participation and Policies"

Abstract: We study how the threat of entry affects service quantity and quality of general practitioners (GPs). We leverage Germany's needs-based primary care planning system, in which the likelihood of new GPs reduces by 20 percentage points when primary care coverage exceeds a cut-off. We compile novel data covering all German primary care regions and up to 30,000 GP-level observations from 2014 to 2019. Reduced threat of entry lowers patient satisfaction for incumbent GPs without nearby competitors but not in areas with competitors. We find no effects on working hours or quality measures at the regional level including hospitalizations and mortality.

Keywords: Entry regulation; general practitioners; healthcare provision; threat of entry; regression discontinuity design (search for similar items in EconPapers)
JEL-codes: I11 I18 J22 J44 L10 L22 R23 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-com, nep-eur, nep-hea, nep-lma and nep-reg
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https://www.econstor.eu/bitstream/10419/305253/1/1906644160.pdf (application/pdf)

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Working Paper: Cut off from new competition: Threat of entry and health care quality (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cexwps:305253

DOI: 10.48787/kops/352-2-14ko8qk55t1y6

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