Location, quality and choice of hospital: Evidence from England 2002/3 - 2012/13

Giuseppe Moscelli, Luigi Siciliani, Nils Gutacker () and Hugh Gravelle

No 123cherp, Working Papers from Centre for Health Economics, University of York

Abstract: We investigate (a) how patient choice of hospital for elective hip replacement is influenced by distance, quality and waiting times, (b) differences in choices between patients in urban and rural locations, (c) the relationship between hospitals’ elasticities of demand to quality and the number of local rivals, and how these changed after relaxation of constraints on hospital choice in England in 2006. Using a data set on over 500,000 elective hip replacement patients over the period 2002/3 to 2012/13 we find that patients became more likely to travel to a provider with higher quality or lower waiting times, the proportion of patients bypassing their nearest provider increased from 25% to almost 50%, and hospital elasticity of demand with respect to own quality increased. By 2012/13 average hospital demand elasticity with respect to readmission rates and waiting times were 0.2 and 0.04. Providers facing more rivals had demand that was more elastic with respect to quality and waiting times. Patients from rural areas have smaller disutility from distance.

Keywords: hospital; choice; quality; waiting times; distance; rurality (search for similar items in EconPapers)
JEL-codes: I11 I18 L15 R22 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2016-01
New Economics Papers: this item is included in nep-eur, nep-hea and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

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Persistent link: https://EconPapers.repec.org/RePEc:chy:respap:123cherp

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