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Quality and hospital choice for cataract treatments: the winner takes most

Author

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  • Suzanne Ruwaard
  • Rudy Douven

    (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

We study the impact of quality on patient volume and hospital choice for cataract treatments. Our dataset covers the period 2006-2011 and includes all 854,613 patients who underwent a cataract treatment in the Netherlands. At the aggregate-level we find that, a one-point quality increase, on a scale of one to a hundred, would raise patient volume for the average hospital by 2-4%. This effect is mainly due to the performance of the top performing hospital. This effect halves after excluding this hospital from the dataset. Also at the individual-level, we find, all else being equal, that patients are willing to travel an additional 11km or more for the top performing as opposed to other hospitals. Our results suggest that the impact of quality on patient volume and willingness to travel is non-linear. Only the top performing hospital is able to attract significantly more patients.

Suggested Citation

  • Suzanne Ruwaard & Rudy Douven, 2014. "Quality and hospital choice for cataract treatments: the winner takes most," CPB Discussion Paper 272, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:discus:272
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    Cited by:

    1. Moscelli, Giuseppe & Siciliani, Luigi & Gutacker, Nils & Gravelle, Hugh, 2016. "Location, quality and choice of hospital: Evidence from England 2002–2013," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 112-124.
    2. Giuseppe Moscelli & Luigi Siciliani & Nils Gutacker & Hugh Gravelle, 2016. "Location, quality and choice of hospital: Evidence from England 2002/3 - 2012/13," Working Papers 123cherp, Centre for Health Economics, University of York.
    3. Fatih Cemil ÖZBUGDAY, 2017. "Hospital Quality and Demand: An Analysis of German Hospitals Using Distance-Metric Approach," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 17(4), pages 493-504.
    4. Husiatyński, Maciej, 2021. "Three essays on individual behavior and new technologies," Other publications TiSEM 1a7d7036-3d54-4a7b-a425-e, Tilburg University, School of Economics and Management.
    5. Gutacker, Nils & Siciliani, Luigi & Moscelli, Giuseppe & Gravelle, Hugh, 2016. "Choice of hospital: Which type of quality matters?," Journal of Health Economics, Elsevier, vol. 50(C), pages 230-246.

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    More about this item

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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