The impact of New Public Management on efficiency: An analysis of Madrid's hospitals

José M. Alonso, Judith Clifton () and Daniel Díaz-Fuentes

Health Policy, 2015, vol. 119, issue 3, 333-340

Abstract: Madrid has recently become the site of one of the most controversial cases of public healthcare reform in the European Union. Despite the fact that the introduction of New Public Management (NPM) into Madrid hospitals has been vigorous, little scholarship has been done to test whether NPM actually led to technical efficiency. This paper is one of the first attempts to do so. We deploy a bootstrapped data envelopment analysis to compare efficiency scores in traditionally managed hospitals and those operating with new management formulas. We do not find evidence that NPM hospitals are more efficient than traditionally managed ones. Moreover, our results suggest that what actually matters may be the management itself, rather than the management model.

Keywords: Healthcare reform; Efficiency; New Public Management; Madrid (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (23)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:hepoli:v:119:y:2015:i:3:p:333-340

DOI: 10.1016/j.healthpol.2014.12.001

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