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Does hospital competition harm equity? Evidence from the English National Health Service

Author

Listed:
  • Richard Cookson

    (Centre for Health Economics, University of York, UK)

  • Mauro Laudicella

    (Imperial College Business School, London, UK)

  • Paolo Li Donni

    (Department of Economics, Finance and Business, University of Palermo, Italy)

Abstract

Increasing evidence shows that hospital competition under fixed prices can improve quality and reduce cost. Concerns remain, however, that competition may undermine socio-economic equity in the utilisation of care. We test this hypothesis in the context of the pro-competition reforms of the English National Health Service progressively introduced from 2004 to 2006. We use a panel of 32,482 English small areas followed from 2003 to 2008 and a difference in differences approach. The effect of competition on equity is identified by the interaction between market structure, small area income deprivation and year. We find a negative association between market dispersion and elective admissions in deprived areas. The effect of pro-competition reform was to reduce this negative association slightly, suggesting that competition did not undermine equity.

Suggested Citation

  • Richard Cookson & Mauro Laudicella & Paolo Li Donni, 2011. "Does hospital competition harm equity? Evidence from the English National Health Service," Working Papers 066cherp, Centre for Health Economics, University of York.
  • Handle: RePEc:chy:respap:66cherp
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    File URL: http://www.york.ac.uk/media/che/documents/papers/researchpapers/CHERP66_does_hospital_competition_harm_equity.pdf
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    References listed on IDEAS

    as
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    8. Cookson, Richard & Laudicella, Mauro & Donni, Paolo Li, 2012. "Measuring change in health care equity using small-area administrative data – Evidence from the English NHS 2001–2008," Social Science & Medicine, Elsevier, vol. 75(8), pages 1514-1522.
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    Cited by:

    1. Gobillon, Laurent & Milcent, Carine, 2017. "Competition and hospital quality: Evidence from a French natural experiment," CEPR Discussion Papers 11773, C.E.P.R. Discussion Papers.
    2. repec:eee:jhecon:v:57:y:2018:i:c:p:290-314 is not listed on IDEAS
    3. Martin Gaynor & Carol Propper & Stephan Seiler, 2016. "Free to Choose? Reform, Choice, and Consideration Sets in the English National Health Service," American Economic Review, American Economic Association, vol. 106(11), pages 3521-3557, November.
    4. Luigi Siciliani & Odd Rune Straume, 2018. "Competition and Equity in Health Care Markets," NIPE Working Papers 01/2018, NIPE - Universidade do Minho.

    More about this item

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise

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