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Competition Among Hospitals And Its Measurement: Theory And A Case Study

Author

Listed:
  • Eyyup Ecevit

    (Bozok University, Turkey)

  • Fatih Ciftci

    (Bozok University, Turkey)

  • Yusuf Ag

    (Bozok University, Turkey)

Abstract

In recent years, the studies related to the healthcare market, place emphasis on the importance of healthcare competition in terms of high quality services and decreases in the amount of healthcare expenses. To this end, many economists and policy makers recommend different strategies related to competition among hospitals and health systems in the healthcare market. In this paper, to measure the competition level of healthcare market, we use such factors as; determination of competitors and services delivered by hospitals, determination of market scope and the measurement method of basic competition, demonstrating the role of insurance companies. In this respect, HHI index exhibiting the concentration in local level is used in order to measure competition level among hospitals. Consequently, it is concluded that an oligopoly structure exists in hospital market.

Suggested Citation

  • Eyyup Ecevit & Fatih Ciftci & Yusuf Ag, 2010. "Competition Among Hospitals And Its Measurement: Theory And A Case Study," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 4(1), pages 15-32, JUNE.
  • Handle: RePEc:rrs:journl:v:4:y:2010:i:1:p:15-32
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    File URL: http://www.rrsa.ro/rjrs/V412.ECEVIT.PDF
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    References listed on IDEAS

    as
    1. Hsien-Ming Lien & Shin-Yi Chou & Jin-Tan Liu, 2010. "The Role Of Hospital Competition On Treatment Expenditure And Outcome: Evidence From Stroke And Cardiac Treatment In Taiwan," Economic Inquiry, Western Economic Association International, vol. 48(3), pages 668-689, July.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Healthcare Market; Competition; Hospitals; Measurement of Competition;

    JEL classification:

    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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