Kurt R. Brekke
(), Chiara Canta
(), Odd Rune Straume
() and Luigi Siciliani
Kurt R. Brekke: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH , Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Chiara Canta: Toulouse Business School, Postal: 1M Place Alphonse Jourdain, 31068 Toulouse, France.
Odd Rune Straume: University of Bergen, Department of Economics and University of Minho, Department of Economics/NIPE
Luigi Siciliani: University of York, Postal: Department of Economics and Related Studies, York YO10 5DD, UK
Abstract: We study the impact of exposing hospitals in a National Health Service (NHS) to non-price competition by exploiting a patient choice reform in Norway in 2001. The reform facilitates a difference-in-difference research design due to geographical variation in the scope for competition. Using rich administrative data covering the universe of NHS hospital admissions from 1998 to 2005, we find that hospitals in more competitive areas have a sharper reduction in AMI mortality, readmissions, and length of stay than hospitals in less competitive areas. These results indicate that competition improves patient health outcomes and hospital cost efficiency, even in the Norwegian NHS with large distances, low fixed treatment prices, and mainly public hospitals.
35 pages, December 6, 2018
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