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The impact of New Public Management on efficiency: An analysis of Madrid's hospitals

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  • Alonso, José M.
  • Clifton, Judith
  • Díaz-Fuentes, Daniel

Abstract

Madrid has recently become the site of one of the most controversial cases of public healthcare reform in the European Union. Despite the fact that the introduction of New Public Management (NPM) into Madrid hospitals has been vigorous, little scholarship has been done to test whether NPM actually led to technical efficiency. This paper is one of the first attempts to do so. We deploy a bootstrapped data envelopment analysis to compare efficiency scores in traditionally managed hospitals and those operating with new management formulas. We do not find evidence that NPM hospitals are more efficient than traditionally managed ones. Moreover, our results suggest that what actually matters may be the management itself, rather than the management model.

Suggested Citation

  • Alonso, José M. & Clifton, Judith & Díaz-Fuentes, Daniel, 2015. "The impact of New Public Management on efficiency: An analysis of Madrid's hospitals," Health Policy, Elsevier, vol. 119(3), pages 333-340.
    • Handle: RePEc:eee:hepoli:v:119:y:2015:i:3:p:333-340
    DOI: 10.1016/j.healthpol.2014.12.001
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    3. Alonso, José M. & Clifton, Judith & Díaz-Fuentes, Daniel, 2017. "The impact of government outsourcing on public spending: Evidence from European Union countries," Journal of Policy Modeling, Elsevier, vol. 39(2), pages 333-348.
    4. Sebastian Kohl & Jan Schoenfelder & Andreas Fügener & Jens O. Brunner, 2019. "The use of Data Envelopment Analysis (DEA) in healthcare with a focus on hospitals," Health Care Management Science, Springer, vol. 22(2), pages 245-286, June.
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    6. Maria Caballer-Tarazona & David Vivas-Consuelo, 2016. "Erratum to: ‘A cost and performance comparison of Public Private Partnership and public hospitals in Spain’," Health Economics Review, Springer, vol. 6(1), pages 1-1, December.
    7. Comendeiro-Maaløe, Micaela & Ridao-López, Manuel & Gorgemans, Sophie & Bernal-Delgado, Enrique, 2019. "A comparative performance analysis of a renowned public private partnership for health care provision in Spain between 2003 and 2015," Health Policy, Elsevier, vol. 123(4), pages 412-418.
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    10. Iablonskii, K. & Fedotov, Y., 2015. "Organizational performance measurement of healthcare organizations," Working Papers 6422, Graduate School of Management, St. Petersburg State University.
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    12. Josef Krupička, 2020. "The Management Accounting Practices in Healthcare: The Case of Czech Public Hospitals," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2020(1), pages 53-66.
    13. Víctor Giménez & Jorge R. Keith & Diego Prior, 2019. "Do healthcare financing systems influence hospital efficiency? A metafrontier approach for the case of Mexico," Health Care Management Science, Springer, vol. 22(3), pages 549-559, September.
    14. Mª Isabel Ortega-Díaz & Ricardo Ocaña-Riola & Carmen Pérez-Romero & José Jesús Martín-Martín, 2020. "Multilevel Analysis of the Relationship between Ownership Structure and Technical Efficiency Frontier in the Spanish National Health System Hospitals," IJERPH, MDPI, vol. 17(16), pages 1-19, August.
    15. José Luis Franco Miguel & Carmen Fullana Belda & Antonio Rúa Vieites, 2019. "Analysis of the technical efficiency of the forms of hospital management based on public‐private collaboration of the Madrid Health Service, as compared with traditional management," International Journal of Health Planning and Management, Wiley Blackwell, vol. 34(1), pages 414-442, January.
    16. Gábor Dávid Kiss & Mercédesz Mészáros, 2019. "Exchange Rate Modeling under Unconventional Monetary Policy on a European Panel Sample," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2019(3), pages 05-24.
    17. Burau, Viola & Dahl, Hanne Marlene & Jensen, Lotte Groth & Lou, Stina, 2018. "Beyond Activity Based Funding. An experiment in Denmark," Health Policy, Elsevier, vol. 122(7), pages 714-721.
    18. Baines, Darrin & Disegna, Marta & Hartwell, Christopher A., 2021. "Portfolio frontier analysis: Applying mean-variance analysis to health technology assessment for health systems under pressure," Social Science & Medicine, Elsevier, vol. 276(C).
    19. Maria Caballer-Tarazona & David Vivas-Consuelo, 2016. "A cost and performance comparison of Public Private Partnership and public hospitals in Spain," Health Economics Review, Springer, vol. 6(1), pages 1-7, December.
    20. Fangxin Yi & Jun Jie Woo & Qiang Zhang, 2022. "Community Resilience and COVID-19: A Fuzzy-Set Qualitative Comparative Analysis of Resilience Attributes in 16 Countries," IJERPH, MDPI, vol. 20(1), pages 1-18, December.
    21. Ho, Foo Nin & Huang, Chin-wei, 2020. "The interdependencies of marketing capabilities and operations efficiency in hospitals," Journal of Business Research, Elsevier, vol. 113(C), pages 337-347.
    22. Arisi, Diego & Cortés, Alix & Delic, Diego & Rossi, Martín, 2022. "Knowledge for Results and the Efficiency of Public Agencies in Colombia," IDB Publications (Working Papers) 12007, Inter-American Development Bank.
    23. Bayram Şahin & Gülnur İlgün, 2019. "Assessment of the impact of public hospital associations (PHAs) on the efficiency of hospitals under the ministry of health in Turkey with data envelopment analysis," Health Care Management Science, Springer, vol. 22(3), pages 437-446, September.

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