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*** Article withdrawn *** Management Practices in Hospitals

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  • Bloom N
  • Propper C
  • Seiler S
  • Van Reenen J

Abstract

We develop a new methodology for measuring management practices in hospitals, and use this in 182 interviews of physicians and managers in public and private hospitals (covering 61% of English acute trusts). We find our management measure is strongly correlated with hospital performance, both clinical outcomes like survival rates from heart attacks, and general operational and financial outcomes. Management in publicly owned hospitals (the National Health Service) compares poorly with management in manufacturing. These public hospitals also appear to have significantly worse management practices than private hospitals. Among publicly owned hospitals management scores are relatively higher for Foundation Trusts (hospitals with greater autonomy from the government), for larger hospitals and where managers have more clinical expertise. We also find some evidence that competition is associated with better hospital performance.

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Paper provided by HEDG, c/o Department of Economics, University of York in its series Health, Econometrics and Data Group (HEDG) Working Papers with number 09/23.

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Date of creation: Jul 2009
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Handle: RePEc:yor:hectdg:09/23

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Postal: HEDG/HERC, Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom
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Web page: http://www.york.ac.uk/economics/postgrad/herc/hedg/
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Keywords: management; hospitals; competition; productivity;

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  1. Nickell, S.J., 1993. "Competition and Crporate Performance," Economics Series Working Papers 99155, University of Oxford, Department of Economics.
  2. Robert E. Lucas Jr., 1978. "On the Size Distribution of Business Firms," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 508-523, Autumn.
  3. Nick Bloom & John Van Reenen, 2006. "Measuring and Explaining Management Practices Across Firms and Countries," NBER Working Papers 12216, National Bureau of Economic Research, Inc.
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