IDEAS home Printed from https://ideas.repec.org/a/spr/eujhec/v19y2018i4d10.1007_s10198-017-0906-6.html
   My bibliography  Save this article

Autonomy and performance in the public sector: the experience of English NHS hospitals

Author

Listed:
  • Rossella Verzulli

    (University of Bologna)

  • Rowena Jacobs

    (University of York)

  • Maria Goddard

    (University of York)

Abstract

Since 2004, English NHS hospitals have been given the opportunity to acquire a more autonomous status known as a Foundation Trust (FT), whereby regulations and restrictions over financial, management, and organizational matters were reduced in order to create incentives to deliver higher-quality services in the most efficient way. Using difference-in-difference models, we test whether achieving greater autonomy (FT status) improved hospital performance, as proxied by measures of financial management, quality of care, and staff satisfaction. Results provide little evidence that the FT policy per se has made any difference to the performance of hospitals in most of these domains. Our findings have implications for health policy and inform the trend towards granting greater autonomy to public-sector organizations.

Suggested Citation

  • Rossella Verzulli & Rowena Jacobs & Maria Goddard, 2018. "Autonomy and performance in the public sector: the experience of English NHS hospitals," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(4), pages 607-626, May.
  • Handle: RePEc:spr:eujhec:v:19:y:2018:i:4:d:10.1007_s10198-017-0906-6
    DOI: 10.1007/s10198-017-0906-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10198-017-0906-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10198-017-0906-6?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. Anders Böhlmark & Mikael Lindahl, 2015. "Independent Schools and Long-run Educational Outcomes: Evidence from Sweden's Large-scale Voucher Reform," Economica, London School of Economics and Political Science, vol. 82(327), pages 508-551, July.
    2. Hanushek, Eric A. & Kain, John F. & Rivkin, Steven G. & Branch, Gregory F., 2007. "Charter school quality and parental decision making with school choice," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 823-848, June.
    3. Giorgia Marini & Marisa Miraldo & Rowena Jacobs & Maria Goddard, 2008. "Giving greater financial independence to hospitals—does it make a difference? The case of English NHS Trusts," Health Economics, John Wiley & Sons, Ltd., vol. 17(6), pages 751-775, June.
    4. Gaynor, Martin & Laudicella, Mauro & Propper, Carol, 2012. "Can governments do it better? Merger mania and hospital outcomes in the English NHS," Journal of Health Economics, Elsevier, vol. 31(3), pages 528-543.
    5. Chris Bojke & Maria Goddard, 2010. "Foundation Trusts: A Retrospective Review," Working Papers 058cherp, Centre for Health Economics, University of York.
    6. Nicholas Bloom & Carol Propper & Stephan Seiler & John Van Reenen, 2015. "The Impact of Competition on Management Quality: Evidence from Public Hospitals," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 82(2), pages 457-489.
    7. Francois, Patrick, 2000. "'Public service motivation' as an argument for government provision," Journal of Public Economics, Elsevier, vol. 78(3), pages 275-299, November.
    8. Heyes, Anthony, 2005. "The economics of vocation or 'why is a badly paid nurse a good nurse'?," Journal of Health Economics, Elsevier, vol. 24(3), pages 561-569, May.
    9. Propper, Carol & Croxson, Bronwyn & Shearer, Arran, 2002. "Waiting times for hospital admissions: the impact of GP fundholding," Journal of Health Economics, Elsevier, vol. 21(2), pages 227-252, March.
    10. Robert Bifulco & Helen F. Ladd, 2006. "The Impacts of Charter Schools on Student Achievement: Evidence from North Carolina," Education Finance and Policy, MIT Press, vol. 1(1), pages 50-90, January.
    11. Shields, Michael A. & Ward, Melanie, 2001. "Improving nurse retention in the National Health Service in England: the impact of job satisfaction on intentions to quit," Journal of Health Economics, Elsevier, vol. 20(5), pages 677-701, September.
    12. Brekke, Kurt R. & Siciliani, Luigi & Straume, Odd Rune, 2012. "Quality competition with profit constraints," Journal of Economic Behavior & Organization, Elsevier, vol. 84(2), pages 642-659.
    13. George France & Francesco Taroni & Andrea Donatini, 2005. "The Italian health‐care system," Health Economics, John Wiley & Sons, Ltd., vol. 14(S1), pages 187-202, September.
    14. Rebecca Allen, 2010. "Does school autonomy improve educational outcomes? Judging the performance of foundation secondary schools in England," DoQSS Working Papers 10-02, Quantitative Social Science - UCL Social Research Institute, University College London.
    15. Propper, Carol & Sutton, Matt & Whitnall, Carolyn & Windmeijer, Frank, 2010. "Incentives and targets in hospital care: Evidence from a natural experiment," Journal of Public Economics, Elsevier, vol. 94(3-4), pages 318-335, April.
    16. Booker, Kevin & Gilpatric, Scott M. & Gronberg, Timothy & Jansen, Dennis, 2007. "The impact of charter school attendance on student performance," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 849-876, June.
    17. Sofia Dimakou & David Parkin & Nancy Devlin & John Appleby, 2009. "Identifying the impact of government targets on waiting times in the NHS," Health Care Management Science, Springer, vol. 12(1), pages 1-10, March.
    18. repec:mpr:mprres:5883 is not listed on IDEAS
    19. Zimmer, Ron & Buddin, Richard, 2006. "Charter school performance in two large urban districts," Journal of Urban Economics, Elsevier, vol. 60(2), pages 307-326, September.
    20. Frey, Bruno S, 1997. "A Constitution for Knaves Crowds Out Civic Virtues," Economic Journal, Royal Economic Society, vol. 107(443), pages 1043-1053, July.
    21. Damon Clark, 2009. "The Performance and Competitive Effects of School Autonomy," Journal of Political Economy, University of Chicago Press, vol. 117(4), pages 745-783, August.
    22. Stephen Machin & James Vernoit, 2011. "Changing School Autonomy: Academy Schools and their Introduction to England's Education," CEE Discussion Papers 0123, Centre for the Economics of Education, LSE.
    23. Caroline M. Hoxby & Sonali Murarka, 2009. "Charter Schools in New York City: Who Enrolls and How They Affect Their Students' Achievement," NBER Working Papers 14852, National Bureau of Economic Research, Inc.
    24. Rowena Jacobs & Diane Dawson, 2003. "Hospital efficiency targets," Health Economics, John Wiley & Sons, Ltd., vol. 12(8), pages 669-684, August.
    25. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
    26. Tim R. Sass, 2006. "Charter Schools and Student Achievement in Florida," Education Finance and Policy, MIT Press, vol. 1(1), pages 91-122, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Levaggi, Laura & Levaggi, Rosella, 2020. "Is there scope for mixed markets in the provision of hospital care?," Social Science & Medicine, Elsevier, vol. 247(C).

    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. Yusuke Jinnai, 2015. "How Does School Choice Improve Student Achievement? Estimating School-level Competitive Effects and Student-level Peer Effects," Working Papers EMS_2016_09, Research Institute, International University of Japan.
    2. Rossella Verzulli & Rowena Jacobs & Maria Goddard, 2011. "Do hospitals respond to greater autonomy? Evidence from the English NHS," Working Papers 064cherp, Centre for Health Economics, University of York.
    3. Ron Zimmer & Brian Gill & Jonathon Attridge & Kaitlin Obenauf, 2014. "Charter School Authorizers and Student Achievement," Education Finance and Policy, MIT Press, vol. 9(1), pages 59-85, January.
    4. Imberman, Scott A., 2011. "The effect of charter schools on achievement and behavior of public school students," Journal of Public Economics, Elsevier, vol. 95(7), pages 850-863.
    5. Figlio, D. & Karbownik, K. & Salvanes, K.G., 2016. "Education Research and Administrative Data," Handbook of the Economics of Education,, Elsevier.
    6. Maria Ferreyra & Brett Gordon & Dennis Epple, 2011. "Charter School Entry in Market Equilibrium: The Case of Washington, DC," 2011 Meeting Papers 1266, Society for Economic Dynamics.
    7. repec:mpr:mprres:8005 is not listed on IDEAS
    8. Margaret Brehm & Scott A. Imberman & Michael Naretta, 2017. "Capitalization of Charter Schools into Residential Property Values," Education Finance and Policy, MIT Press, vol. 12(1), pages 1-27, Winter.
    9. Léonard Moulin, 2023. "Do private schools increase academic achievement? Evidence from France," Education Economics, Taylor & Francis Journals, vol. 31(2), pages 247-274, March.
    10. Kevin Booker & Tim R. Sass & Brian Gill & Ron Zimmer, 2011. "The Effects of Charter High Schools on Educational Attainment," Journal of Labor Economics, University of Chicago Press, vol. 29(2), pages 377-415.
    11. Ni, Yongmei & Rorrer, Andrea K., 2012. "Twice considered: Charter schools and student achievement in Utah," Economics of Education Review, Elsevier, vol. 31(5), pages 835-849.
    12. John D. Singleton, 2019. "Incentives and the Supply of Effective Charter Schools," American Economic Review, American Economic Association, vol. 109(7), pages 2568-2612, July.
    13. Ron Zimmer & Brian Gill & Jonathon Attridge & Kaitlin Obenauf, "undated". "Charter School Authorizers and Student Achievement (Journal Article)," Mathematica Policy Research Reports 6e4664294f7341868c9a78142, Mathematica Policy Research.
    14. repec:mpr:mprres:7808 is not listed on IDEAS
    15. Kevin Booker & Brian Gill & Tim Sass & Ron Zimmer, "undated". "Charter High Schools' Effects on Long-Term Attainment and Earnings (Working Paper)," Mathematica Policy Research Reports cfe561a4b1924b7eafb64f918, Mathematica Policy Research.
    16. Carruthers, Celeste K., 2012. "New schools, new students, new teachers: Evaluating the effectiveness of charter schools," Economics of Education Review, Elsevier, vol. 31(2), pages 280-292.
    17. Scott A. Imberman, 2011. "Achievement and Behavior in Charter Schools: Drawing a More Complete Picture," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 416-435, May.
    18. Hanushek, Eric A. & Link, Susanne & Woessmann, Ludger, 2013. "Does school autonomy make sense everywhere? Panel estimates from PISA," Journal of Development Economics, Elsevier, vol. 104(C), pages 212-232.
    19. Nicholas Bloom & Renata Lemos & Raffaella Sadun & John Van Reenen, 2015. "Does Management Matter in schools?," Economic Journal, Royal Economic Society, vol. 0(584), pages 647-674, May.
    20. Besley, Timothy & Malcomson, James M., 2018. "Competition in public service provision: The role of not-for-profit providers," Journal of Public Economics, Elsevier, vol. 162(C), pages 158-172.
    21. Dennis Epple & Richard Romano & Ron Zimmer, 2015. "Charter Schools: A Survey of Research on Their Characteristics and Effectiveness," NBER Working Papers 21256, National Bureau of Economic Research, Inc.
    22. Chakrabarti, Rajashri & Roy, Joydeep, 2016. "Do charter schools crowd out private school enrollment? Evidence from Michigan," Journal of Urban Economics, Elsevier, vol. 91(C), pages 88-103.

    More about this item

    Keywords

    Foundation Trusts; Hospital reform; Autonomy; Hospital performance; Treatment effects; Policy evaluation;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

    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:spr:eujhec:v:19:y:2018:i:4:d:10.1007_s10198-017-0906-6. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.