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

Eduard Brüll, Davud Rostam-Afschar and Oliver Schlenker

No 24-066, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: We study how the threat of entry affects service quantity and quality of general prac- titioners (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 com- petitors 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 L10 L22 R23 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-com, nep-hea and nep-reg
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https://www.econstor.eu/bitstream/10419/312185/1/dp24066.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:zewdip:312185

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