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Provider competition and healthcare quality: More bang for the buck?

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  • Katz, Michael L.

Abstract

Public and private entities around the world are trying to induce the provision of higher-quality health care by adopting institutional arrangements intended to promote competition among care providers. I selectively survey and supplement the literature to show that an increase in competition—modeled either as a larger number of care providers or greater precision of signals available to consumers regarding provider quality—may result in lower equilibrium quality, holding prices fixed. These findings are an indication that considerable opportunities exist for industrial organization theorists to contribute to our understanding of healthcare markets.

Suggested Citation

  • Katz, Michael L., 2013. "Provider competition and healthcare quality: More bang for the buck?," International Journal of Industrial Organization, Elsevier, vol. 31(5), pages 612-625.
  • Handle: RePEc:eee:indorg:v:31:y:2013:i:5:p:612-625
    DOI: 10.1016/j.ijindorg.2013.02.001
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Giuseppe Moscelli & Hugh Gravelle & Luigi Siciliani, 2016. "Market structure, patient choice and hospital quality for elective patients," Working Papers 139cherp, Centre for Health Economics, University of York.
    2. Gerdes, Christer, 2015. "Does Performance Information Affect Job Seekers in Selecting Private Providers in Voucher-Based ALMP Programs?," IZA Discussion Papers 8992, Institute for the Study of Labor (IZA).
    3. Carrie Colla & Julie Bynum & Andrea Austin & Jonathan Skinner, 2016. "Hospital Competition, Quality, and Expenditures in the U.S. Medicare Population," NBER Working Papers 22826, National Bureau of Economic Research, Inc.
    4. repec:nip:nipewp:10/2014 is not listed on IDEAS
    5. repec:bla:jindec:v:65:y:2017:i:1:p:73-104 is not listed on IDEAS
    6. repec:bla:scandj:v:119:y:2017:i:3:p:597-627 is not listed on IDEAS
    7. Kurt R. Brekke & Luigi Siciliani & Odd Rune Straume, 2017. "Hospital Mergers with Regulated Prices," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(3), pages 597-627, July.
    8. Hugh Gravelle & Giuseppe Moscelli & Rita Santos & Luigi Siciliani, 2014. "Patient choice and the effects of hospital market structure on mortality for AMI, hip fracture and stroke patients," Working Papers 106cherp, Centre for Health Economics, University of York.
    9. repec:spr:eujhec:v:19:y:2018:i:3:d:10.1007_s10198-017-0891-9 is not listed on IDEAS
    10. repec:eee:jhecon:v:57:y:2018:i:c:p:131-146 is not listed on IDEAS

    More about this item

    Keywords

    Healthcare; Quality; Competition; Insurance; Hospitals; Information;

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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