Evaluating the Effect of Ownership Status on Hospital Quality: The Key Role of Innovative Procedures

Laurent Gobillon and Carine Milcent

Annals of Economics and Statistics, 2016, issue 121-122, 161-186

Abstract: Mortality differences between university, non-teaching public and for-profit hospitals are investigated using an exhaustive French administrative dataset of patients admitted for heart attacks. Our results show that innovative procedures play a key role in explaining the effect of ownership status on hospital quality. When age, sex, diagnoses and co-morbidities are held constant, the mortality rates in for-profit and university hospitals are similar, but they are lower than in nonteaching public hospitals. When additionally controlling for innovative procedures, the mortality rate is higher in for-profit hospitals than in the two groups of public hospitals. This suggests that the quality of care in for-profit hospitals relies on their capacity to perform innovative procedures. A counterfactual exercise shows that if patients in non-teaching public hospitals were treated with innovative procedures following the assignment rule of for-profit hospitals rather than that of non-teaching public hospitals, their probability of death after a duration of 7 days would be 1.8 points lower,

Keywords: Hospital Performance; Innovative Procedures; Stratified Duration Model. (search for similar items in EconPapers)
JEL-codes: I12 I18 (search for similar items in EconPapers)
Date: 2016
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http://www.jstor.org/stable/10.15609/annaeconstat2009.121-122.161 (text/html)

Related works:
Working Paper: Evaluating the Effect of Ownership Status on Hospital Quality: The Key Role of Innovative Procedures (2016)
Working Paper: Evaluating the Effect of Ownership Status on Hospital Quality: The Key Role of Innovative Procedures (2016)
Working Paper: Evaluating the effect of ownership status on hospital quality: the key role of innovative procedures (2013)
Working Paper: Evaluating the Effect of Ownership Status on Hospital Quality: The Key Role of Innovative Procedures (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:adr:anecst:y:2016:i:121-122:p:161-186

DOI: 10.15609/annaeconstat2009.121-122.161

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