Do hospitals respond to rivalsâ€™ quality and efficiency? a spatial econometrics approach
Luigi Siciliani (),
Hugh Gravelle () and
Rita Santos ()
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Francesco Longo: Department of Economics and Related Studies, University of York, York, UK
No 144cherp, Working Papers from Centre for Health Economics, University of York
We investigate whether hospitals in the English National Health Service increase their quality (mortality, emergency readmissions, patient reported outcome, and patient satisfaction) or efficiency (bed occupancy rate, cancelled operations, and cost indicators) in response to an increase in quality or efficiency of neighbouring hospitals. We estimate spatial cross-sectional and panel data models, including spatial cross-sectional instrumental variables. Hospitals generally do not respond to neighboursâ€™ quality and efficiency. This suggests the absence of spillovers across hospitals in quality and efficiency dimensions and has policy implications, for example, in relation to allowing hospital mergers.
Keywords: quality; efficiency; hospitals; competition; spatial econometrics (search for similar items in EconPapers)
JEL-codes: C21 C23 I11 L3 L11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-eff, nep-eur, nep-hea and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:chy:respap:144cherp
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