Does hospital competition harm equity? Evidence from the English National Health Service

Cookson, R., Laudicella, M. & Li Donni, P. (2013). Does hospital competition harm equity? Evidence from the English National Health Service. Journal of Health Economics, 32(2), pp. 410-422. doi: 10.1016/j.jhealeco.2012.11.009

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Abstract

Increasing evidence shows that hospital competition under fixed prices can improve quality and reduce cost. Concerns remain, however, that competition may undermine socio-economic equity in the utilisation of care. We test this hypothesis in the context of the pro-competition reforms of the English National Health Service progressively introduced from 2004 to 2006. We use a panel of 32,482 English small areas followed from 2003 to 2008 and a difference in differences approach. The effect of competition on equity is identified by the interaction between market structure, small area income deprivation and year. We find a negative association between market competition and elective admissions in deprived areas. The effect of pro-competition reform was to reduce this negative association slightly, suggesting that competition did not undermine equity.

Item Type: Article
Additional Information: NOTICE: this is the author’s version of a work that was accepted for publication in Journal of Health Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Health Economics, Volume 32, Issue 2, March 2013, Pages 410–422, http://dx.doi.org/10.1016/j.jhealeco.2012.11.009.
Uncontrolled Keywords: Economic Competition, Economics, Hospital, England, Healthcare Disparities, Humans, National Health Programs, Poverty Areas, Small-Area Analysis, Socioeconomic Factors
Subjects: R Medicine > RA Public aspects of medicine
Divisions: School of Health Sciences > Healthcare Research Unit
Related URLs:
URI: http://openaccess.city.ac.uk/id/eprint/6403

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