Introducing Activity-Based Payment in the Hospital Industry: Evidence from French Data

Philippe Choné, Franck Evain, Lionel Wilner and Engin Yilmaz

No 4304, CESifo Working Paper Series from CESifo

Abstract: Many countries have reformed hospital reimbursement policies to provide stronger incentives for quality and cost reduction. The purpose of this work is to understand how the effect of such reforms depends on the intensity of local competition. We build a nonprice competition model to examine the effect of a shift from global budget to patient-based payment for public hospitals in France. We predict that the number of patient admissions should increase in public hospitals by more than in private clinics and that the increase in admissions is stronger in public hospitals more exposed to competitive pressure from private clinics. Considering the reform implemented in France between 2005 and 2008, we find empirical evidence supporting these predictions.

Keywords: health care markets; prospective payment system; local competition; not-for-profit hospitals (search for similar items in EconPapers)
JEL-codes: I11 I18 L33 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Working Paper: Introducing activity-based payment in the hospital industry: Evidence from French data (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_4304

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