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Explaining Differences in Hospital Performance: Does the Answer Lie in the Labour Market?

  • Burgess, Simon
  • Gossage, Denise
  • Propper, Carol

This Paper examines the relationship between performance of English public sector hospitals (NHS trusts) and the quality of their nursing staff. Performance ratings of NHS trusts published in 2001 and 2002 indicate a clear regional divide. This divide is not explained by lower medical need. The gap between wages in the private and public sector (the private sector premium) has a regional divide similar to that of the performance ratings. Utilising cross sectional variation in the private sector premium, we find that performance against several of the individual targets that are aggregated into the NHS performance ratings is negatively associated with the private sector premium.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4118.

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Date of creation: Nov 2003
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Handle: RePEc:cpr:ceprdp:4118
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  1. repec:rus:hseeco:122160 is not listed on IDEAS
  2. Julie Berry Cullen & Randall Reback, 2006. "Tinkering Toward Accolades: School Gaming Under a Performance Accountability System," NBER Working Papers 12286, National Bureau of Economic Research, Inc.
  3. Carol Propper & Deborah Wilson, 2003. "The Use and Usefulness of Performance Measures in the Public Sector," The Centre for Market and Public Organisation 03/073, Department of Economics, University of Bristol, UK.
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