Introducing activity-based payment in the hospital industry: Evidence from French data

P. Choné, F. Evain, Lionel Wilner and E. Yilmaz
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P. Choné: Insee
F. Evain: Insee
E. Yilmaz: Insee

Documents de Travail de l'Insee - INSEE Working Papers from Institut National de la Statistique et des Etudes Economiques

Abstract: Many countries have reformed hospital reimbursement policies to provide stronger incentives for quality and cost reduction. The purpose of this work is to show 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 should be stronger in public hospitals that are 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: the activity increased up to 10% in public hospitals more exposed to competitive pressure from private clinics while it hardly raised by 4% in public hospitals less exposed to such a competitive pressure, in comparison with private clinics.

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
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https://www.bnsp.insee.fr/ark:/12148/bc6p06zr6v1/f1.pdf Document de travail de la DESE numéro G2013-11 (application/pdf)

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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:nse:doctra:g2013-11

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