Financial Incentives and Competitive Pressure: The Case of the Hospital Industry

Philippe Choné and Lionel Wilner

Journal of the European Economic Association, 2022, vol. 20, issue 2, 626-666

Abstract: In the late 2000s, a regulatory reform dramatically strengthened the incentives of French nonprofit (NP) hospitals to attract patients. Exploiting exhaustive data for surgery treatments between 2005 and 2008, and modeling hospitals as supplying utility to patients, we show that increased competitive pressure on NP hospitals caused them to perform more procedures, but did not inflate overall activity at the industry level. Although they have gained market shares over their for-profit (FP) counterparts, NP hospitals have been significantly worse off after the reform. To adjust to stronger financial incentives, they incurred an additional effort (pecuniary and non-pecuniary costs) equivalent to about a quarter of their annual revenue.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1093/jeea/jvab031 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Financial Incentives and Competitive Pressure: The Case of the Hospital Industry (2022)
Working Paper: Financial Incentives and Competitive Pressure: The Case of the Hospital Industry (2020)
Working Paper: Competition on Unobserved Attributes: The Case of the Hospital Industry (2019)
Working Paper: Competition on Unobserved Attributes: The Case of the Hospital Industry (2019)
Working Paper: Complementarity or substitutability in networks? Methodology and application to the hospital industry (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:jeurec:v:20:y:2022:i:2:p:626-666.

Access Statistics for this article

Journal of the European Economic Association is currently edited by Romain Wacziarg

More articles in Journal of the European Economic Association from European Economic Association
Bibliographic data for series maintained by Oxford University Press ().