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

Author

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  • 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
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    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).

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    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

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