Effects of competition on hospital quality: An examination using hospital administrative data

European Journal of Health Economics

Volumn 14, Issue 3, 2013, Pages 415-429

  Palangkaraya, Alfons ^a   Yong, Jongsay ^a  

^a UNIVERSITY OF MELBOURNE   (Australia)

Author keywords

Hospital competition; Hospital markets; Hospital quality

Indexed keywords

ARTICLE; AUSTRALIA; CATCHMENT; COMPETITION; DATA BASE; HEALTH CARE QUALITY; HEALTH CARE SYSTEM; HOSPITAL FINANCE; HOSPITAL READMISSION; HUMAN; MORTALITY; PRIORITY JOURNAL; PRIVATE HOSPITAL; PUBLIC HOSPITAL; AGE; AGED; ECONOMIC ASPECT; FEMALE; HOSPITAL MANAGEMENT; MALE; MIDDLE AGED; PATIENT ACUITY; SEX DIFFERENCE; STATISTICS AND NUMERICAL DATA; VERY ELDERLY;

AGE FACTORS; AGED; AGED, 80 AND OVER; ECONOMIC COMPETITION; FEMALE; HOSPITAL ADMINISTRATION; HOSPITAL MORTALITY; HOSPITALS, PRIVATE; HOSPITALS, PUBLIC; HUMANS; MALE; MIDDLE AGED; PATIENT ACUITY; PATIENT READMISSION; QUALITY OF HEALTH CARE; SEX FACTORS; VICTORIA;

EID: 84880720338     PISSN: 16187598     EISSN: 16187601     Source Type: Journal    
DOI: 10.1007/s10198-012-0386-7     Document Type: Article

References (53)

1. Abraham, J.; Gaynor, M.; Vogt, W.: Entry and competition in local hospital markets. J. Ind. Econ. LV, 265-288 (2007)
2. Beggs, V.L.; Birkemeyer, N.J.; Nugent, W.C.: Factors related to rehospitalization within 30 days of discharge after coronary bypass grafting. Best Pract. Benchmark. Healthc. 1, 180-186 (1996)
3. Benbassat, J.; Taragin, M.: Hospital readmissions as a measure of quality of health care. Arch. Intern. Med. 160, 1074-1081 (2000) (Pubitemid 30227016)
4. Bijlsma, M.; Koning, P.; Shestalova, V.: The effect of competition on process and outcome quality within hospital care in The Netherlands. TILEC discussion paper DP 2011-002, Tilburg University (2011)
5. Bloomm, N.; Propper, C.; Seiler, S.; Reenen, J.V.: The impact of competition on management quality: evidence from public hospitals. NBER working paper 16032, NBER (2010)
6. Brekke, K.; Nuscheler, R.; Straume, O.: Quality and location choices under price regulation. J. Econ. Manag. Strateg. 15, 207-227 (2006) (Pubitemid 43439421)
7. Brekke, K.; Siciliani, L.; Straume, O.: Hospital competition and quality with regulated prices. CESIFO working paper 2635, CESIFO (2009)
8. Capps, C.: The quality effects of hospital mergers. Unpublished paper, Bates White LLC (2005)
9. Charlson, M.; Pompei, P.; Ales, K.; MacKenzie, C.: A new method of classifying prognostic comorbidity in longitudinal studies: development and validation. J. Chronic Dis. 40, 373-383 (1987) (Pubitemid 17055592)
10. Chua, C.; Palangkaraya, A.; Yong, J.: Hospital competition, technical efficiency, and quality. Econ. Rec. 87(277), 252-268 (2011)
11. Cooper, Z.; Gibbons, S.; Jones, S.; McGuire, A.: Does hospital competition save lives? Evidence from the English NHS patient choice reforms. Working paper 16/2010, LSE Health, London School of Economics and Political Science (2010)
12. Custers, T.; Arah, O.; Klazinga, N.: Is there a business case for quality in the netherlands? A critical analysis of the recent reforms of the health care system. Health Policy 81, 226-239 (2007) (Pubitemid 46777057)
13. Cutler, D.; Huckman, R.; Kolstad, J.: Input constraints and the efficiency of entry: lessons from cardiac surgery. Am. Econ. J. Econ. Policy 2(1), 51-76 (2010)
14. Deber, R.: Slave to economists? A Canadian's view of the Australian health care system. Aust. Health Rev. 29(4), 386-391 (2005)
15. Encinosa, W.E.; Bernard, D.M.: Hospital finances and patient safety outcomes. Inquiry 42(1), 60-72 (2005) (Pubitemid 41602417)
16. Enthoven, A.; van de Ven, W.: Going Dutch - managed-competition health insurance in The Netherlands. N. Eng. J. Med 357, 2421-2423 (2007) (Pubitemid 350272779)
17. Escarce, J.; Jain, A.; Rogowski, J.: Hospital competition, managed care and mortality after hospitalization for medical conditions: evidence from three states. NBER working paper 12335. NBER, Cambridge (2006)
18. Fasken, L.L.; Wipke-Tevis, D.D.; Sagehorn, K.K.: Factors associated with unplanned readmissions following cardiac surgery. Prog. Cardiovasc. Nurs. 16, 107-115 (2001)
19. Gaynor, M.: What do we know about competition and quality in health care markets? NBER working paper 12301, NBER (2006)
20. Gaynor, M.; Town, R.: Competition in health care markets. NBER working paper 17208, NBER (2011)
21. Gorodeski, E.Z.; Starling, R.C.; Blackstone, E.H.: Are all readmissions bad readmissions? N. Engl. J. Med. 363(3), 297-298 (2010)
22. Gowrisankaran, G.; Town, R.: Competition, payers, and hospital quality. Health Serv. Res. 38(6), 1403-1422 (2003)
23. Halbersma, R.; Mikkers, M.; Motchenkova, E.; Seinen, I.: Market structure and hospital-insurer bargaining in the netherlands. Eur. J. Health Econ. 12, 589-603 (2011)
24. Harper, R.; Sampson, K.; See, P.; Kealey, J.; Meredith, I.: Costs, charges and revenues of elective coronary angioplasty and stenting: the public versus the private system. Med. J. Aust. 173(6), 296-300 (2000)
25. Ho, V.: Learning and the evolution of medical technologies: the diffusion of coronary angioplasty. J. Health Econ. 21(5), 873-885 (2002)
26. Howard, D.H.: Quality and consumer choice in healthcare: evidence from kidney transplantation. Top. Econ. Anal. Policy 5(1), 1-20 (2005)
27. Jensen, P.; Webster, E.; Witt, J.: Hospital type and patient outcomes: an empirical examination using ami readmission and mortality records. Health Econ. 18, 1440-1460 (2009)
28. Karlsson, M.: Quality incentives for gps in a regulated market. J Health Econ. 26, 699-720 (2007) (Pubitemid 46802844)
29. Kessler, D.; McClellan, M.: Is hospital competition socially wasteful? Q. J. Econ. 115(4), 577-615 (2000)
30. Kessler, D.P.; Geppert, J.J.: The effects of competition on variation in the quality and cost of medical care. J. Econ. Manag. Strateg. 14(3), 575-589 (2005) (Pubitemid 41239670)
31. Melnick, G.; Zwanziger, J.: Hospital behavior under competition and cost-containment policies: the California experience, 1980-1985. J. Am. Med. Assoc. 260, 2669-2675 (1988) (Pubitemid 18261977)
32. Mukamel, D.; Zwanziger, J.; Bamezai, A.: Hospital competition, resource allocation and quality of care. BMC Health Serv. Res. 2(1), 10-18 (2002)
33. Mukamel, D.; Zwanziger, J.; Tomaszewski, K.J.: Hmo penetration, competition and risk-adjusted hospital mortality. Health Serv. Res. 36(6), 1019-1035 (2001) (Pubitemid 34016596)
34. Mundlak, Y.: On the pooling of time series and cross section data. Econometrica 84, 69-85 (1978)
35. Mutter, R.; Wong, H.; Goldfarb, M.: The effects of hospital competition on inpatient quality of care. Inquiry 45, 263-279 (2008)
36. O'Hara, D.; Brook, C.: The utilisation of public and private hospitals in victoria: an issue of access? Aust. Health Rev. 19(3), 40-54 (1996)
37. O'Loughlin, M.: Conflicting interests in private hospital care. Aust. Health Rev. 25(5), 106-116 (2002)
38. Perrot, B.; Hughes, R. (eds): A porters five forces approach to the Australian private hospital industry, vol. 19. ANZAM conference, Canberra, Australia (2005)
39. Productivity Commission: Public and Private Hospitals. Research report, Productivity Commission, Canberra, Australia (2009)
40. Propper, C.; Burgess, S.; Gossage, D.: Competition and quality: evidence from the NHS internal markets 1991-1999. Econ. J. 118, 138-170 (2008)
41. Propper, C.; Burgess, S.; Green, K.: Does competition between hospitals improve the quality of care? Hospital death rates and the NHS internal market. J. Public Econ. 88(7-8), 1247-1272 (2004) (Pubitemid 38102618)
42. Rogowski, J.; Jain, A.; Escarce, J.: Hospital competition, managed care, and mortality after hospitalization for medical conditions in California. Health Serv. Res. 42(2), 682-705 (2007) (Pubitemid 46398786)
43. Sabourin, C.B.; Funk, M.: Readmission of patients after coronary artery bypass graft surgery. Heart Lung 28, 243-250 (1999) (Pubitemid 29337242)
44. Sari, N.: Do competition and managed care improve quality? Health Econ. 11, 571-584 (2002) (Pubitemid 35214715)
45. Shen, Y.S.: The effect of financial pressure on the quality of care in hospitals. J. Health Econ. 22(2), 243-269 (2003) (Pubitemid 36279395)
46. Sohn, M.-W.; Rathouz, P.J.: Competition among hospitals and quality of care: hospital-level analysis. Working paper, University of Chicago (2003)
47. Sundararajan, V.; Brown, K.; Henderson, T.; Hindle, D.: Effects of increased private health insurance on hospital utilisation in Victoria. Aust. Health Rev. 28(3), 320-3229 (2004)
48. Sundararajan, V.; Henderson, T.; Perry, C.; Muggivan, A.; Quan, H.; Ghali, W.: New ICS-10 version of the charlson comorbidity index predicted in-hospital mortality. J. Clin. Epidemiol. 57, 1288-1294 (2004) (Pubitemid 40023149)
49. Tay, A.: Assessing competition in hospital care markets: the importance of accounting for quality differentiation. Rand J. Econ. 34(4), 786-814 (2003) (Pubitemid 38284419)
50. Volpp, K.; Williams, S.; Waldfogel, J.; Silber, J.; Schwartz, J.; Pauly, M.: Market reform in New Jersey and the effect on mortality from acute myocardial infarction. Health Serv. Res. 38(2), 515-533 (2003) (Pubitemid 36570026)
51. Wong, H.; Zhan, C.; Mutter, R.: Do different measures of hospital competition matter in empirical investigations of hospital behavior? Rev. Ind. Organ. 26, 61-87 (2005) (Pubitemid 40280751)
52. Wooldridge, J.: Econometric analysis of cross section and panel data. MIT Press, Cambridge, MA (2002)
53. Zwanziger, J.; Melnick, G.: The effects of hospital competition and the medicare PPS program on hospital cost behavior in California. J. Health Econ. 7, 301-320 (1988) (Pubitemid 19014213)