IDEAS home Printed from https://ideas.repec.org/a/prg/jnlcfu/v2021y2021i1id553p23-35.html
   My bibliography  Save this article

Competition in public procurement in the Czech healthcare system and its impact on the final price
[Konkurencia vo verejnom obstarávaní v českom zdravotníctve a jej dopad na finálnu cenu]

Author

Listed:
  • Mária Horehájová
  • Milan Křápek
  • Juraj Nemec

Abstract

Due to the growing volume of public procurements in the Czech Republic every year, the topic of their quality setting and the achieved result is extremely relevant. One of the important qualitative criteria of public procurement (PP) is the degree of competition, which, as domestic and foreign studies show, affects the final, competitive price of PP. In our article, we focused on the relationship between the degree of competition and the achieved savings from PP in the Czech healthcare system in the period from 2014 to 2019. Our analysis confirmed a statistically significant inversely proportional relationship between the number of offers and the final price achieved through PP. A negative finding is the fact that the number of offers and thus the level of competition in the Czech healthcare system has been declining since 2014, which is related to the growing number of PPs with one offer.

Suggested Citation

  • Mária Horehájová & Milan Křápek & Juraj Nemec, 2021. "Competition in public procurement in the Czech healthcare system and its impact on the final price [Konkurencia vo verejnom obstarávaní v českom zdravotníctve a jej dopad na finálnu cenu]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2021(1), pages 23-35.
    • Handle: RePEc:prg:jnlcfu:v:2021:y:2021:i:1:id:553:p:23-35
    DOI: 10.18267/j.cfuc.553
    as

    Download full text from publisher

    File URL: http://cfuc.vse.cz/doi/10.18267/j.cfuc.553.html
    Download Restriction: free of charge
    File URL: http://cfuc.vse.cz/doi/10.18267/j.cfuc.553.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.cfuc.553?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. AndréS GóMez-Lobo & Stefan Szymanski, 2001. "A Law of Large Numbers: Bidding and Compulsory Competitive Tendering for Refuse Collection Contracts," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 18(1), pages 105-113, February.
    2. Brannman, Lance & Klein, J Douglass & Weiss, Leonard W, 1987. "The Price Effects of Increased Competition in Auction Markets," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 24-32, February.
    3. Jan SOudek & Jiri Skuhrovec, 2013. "Public Procurement of Homogeneous Goods: the Czech Republic Case Study," Working Papers IES 2013/05, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised May 2013.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Barbosa, Klênio & Fiuza, Eduardo Pedral Sampaio, 2012. "Demand aggregation and credit risk effects in pooled procurement: evidence from the Brazilian public purchases of pharmaceuticals and medical supplies," Textos para discussão 299, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    2. Julie Brux & Claudine Desrieux, 2014. "To allot or not to allot public services? An incomplete contract approach," European Journal of Law and Economics, Springer, vol. 37(3), pages 455-476, June.
    3. Grega Matus & Orviska Marta & Nemec Juraj & Lawson Colin, 2019. "Factors Determining the Efficiency of Slovak Public Procurement," NISPAcee Journal of Public Administration and Policy, Sciendo, vol. 12(1), pages 43-68, June.
    4. Beata GAVUROVA & David TUCEK & Viliam KOVAC, 2019. "Economic Aspects Of Public Procurement Parameters In Tertiary Education Sector," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2019(32), pages 42-62, June.
    5. Zhongmin Wang & Minbo Xu, 2016. "Empirical Evidence on Competition and Revenue in an All-Pay Contest," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 49(3), pages 429-448, November.
    6. Juraj Nemec & Matus Grega & Marta Orviska, 2020. "Over-bureaucratisation in public procurement: purposes and results," Public Sector Economics, Institute of Public Finance, vol. 44(2), pages 251-263.
    7. Jan Pavel & Emilia Sičáková-Beblavá, 2013. "Do E-Auctions Realy Improve the Efficiency of Public Procurement? The Case of the Slovak Municipalities," Prague Economic Papers, Prague University of Economics and Business, vol. 2013(1), pages 111-124.
    8. Yusuke Matsuki, 2016. "A Distribution-Free Test of Monotonicity with an Application to Auctions," Working Papers e110, Tokyo Center for Economic Research.
    9. Carlberg, Jared G., 2002. "Effects Of Ownership Restrictions On Farmland Values In Saskatchewan," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(2), pages 1-10, August.
    10. Germa Bel & Anton Costas, 2006. "Do Public Sector Reforms Get Rusty? Local Privatization in Spain," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 9(1), pages 1-24.
    11. Sridhar, V. & Prasad, Rohit, 2021. "Analysis of spectrum pricing for commercial mobile services: A cross country study," Telecommunications Policy, Elsevier, vol. 45(9).
    12. Paul H. Jensen & Robin E. Stonecash, 2004. "The Efficiency of Public Sector Outsourcing Contracts: A Literature Review," Melbourne Institute Working Paper Series wp2004n29, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    13. İlke Onur & Rasim Özcan & Bedri Taş, 2012. "Public Procurement Auctions and Competition in Turkey," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 40(3), pages 207-223, May.
    14. Mihály Fazekas & Lawrence Peter King, 2019. "Perils of development funding? The tale of EU Funds and grand corruption in Central and Eastern Europe," Regulation & Governance, John Wiley & Sons, vol. 13(3), pages 405-430, September.
    15. Luis Mario García Lafuente & Asunción Mochón Sáez, 2022. "Competition effects in EU external aid supply tenders funded with the Pre-accession and Neighbourhood instruments," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(2), pages 461-484, May.
    16. repec:fgv:epgrbe:v:66:n:4:a:2 is not listed on IDEAS
    17. M. S. Iftekhar & A. Hailu & R. K. Lindner, 2014. "Does It Pay to Increase Competition in Combinatorial Conservation Auctions?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(3), pages 411-433, September.
    18. Luis Angeles & Robin G Milne, 2015. "Tracking cost savings from competitive tendering in the short and long run," Working Papers 2015_19, Business School - Economics, University of Glasgow.
    19. Estache, Antonio & Iimi, Atsushi, 2008. "Procurement efficiency for infrastructure development and financial needs reassessed," Policy Research Working Paper Series 4662, The World Bank.
    20. Natasha Slutskaya & Ruth Simpson & Jason Hughes & Alexander Simpson & Selçuk Uygur, 2016. "Masculinity and Class in the Context of Dirty Work," Gender, Work and Organization, Wiley Blackwell, vol. 23(2), pages 165-182, March.
    21. Srabana Gupta, 2001. "The Effect of Bid Rigging on Prices: A Study of the Highway Construction Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 19(4), pages 451-465, December.

    More about this item

    Keywords

    Public procurement; Healthcare; Competition; Savings; Verejné obstarávanie; Zdravotníctvo; Konkurencia; Úspora;
    All these keywords.

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlcfu:v:2021:y:2021:i:1:id:553:p:23-35. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.