Evaluating the Effect of Ownership Status on Hospital Quality: The Key Role of Innovative Procedures

Laurent Gobillon and Carine Milcent

PSE-Ecole d'économie de Paris (Postprint) from HAL

Abstract: Mortality differences between university, non-teaching public and for-profit hospitals are investigated using an exhaustive French administrative dataset of patients admitted for heart attack. Our results show that innovative procedures play a key role in explaining the effect of ownership status on hospital quality. When age, sex, diagnoses and co-morbidities are held constant, the mortality rates in for-profit and university hospitals are similar, but they are lower than in non-teaching public hospitals. When additionally controlling for innovative procedures, the mortality rate is higher in for-profit hospitals than in the two groups of public hospitals. This suggests that the quality of care in for-profit hospitals relies on their capacity to perform innovative procedures. A counterfactual exercise shows that if patients in non-teaching public hospitals were treated with innovative procedures following the assignment rule of for-profit hospitals rather than that of non-teaching public hospitals, their probability of death after a duration of 7 days would be 1.8 points lower.

Keywords: Hospital quality; hospital performance; innovative procedures; stratified duration model JEL code: I12; I18 (search for similar items in EconPapers)
Date: 2016-06
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01509624v1
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Citations: View citations in EconPapers (6)

Published in Annals of Economics and Statistics, 2016, 121-122, pp.161-186. ⟨10.15609/annaeconstat2009.121-122.161⟩

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Related works:
Journal Article: Evaluating the Effect of Ownership Status on Hospital Quality: The Key Role of Innovative Procedures (2016)
Working Paper: Evaluating the Effect of Ownership Status on Hospital Quality: The Key Role of Innovative Procedures (2016)
Working Paper: Evaluating the effect of ownership status on hospital quality: the key role of innovative procedures (2013)
Working Paper: Evaluating the Effect of Ownership Status on Hospital Quality: The Key Role of Innovative Procedures (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:halshs-01509624

DOI: 10.15609/annaeconstat2009.121-122.161

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