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Evaluating the Effect of Ownership Status on Hospital Quality: The Key Role of Innovative Procedures

Author

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  • Gobillon, Laurent

    (Paris School of Economics)

  • Milcent, Carine

    (Paris School of Economics)

Abstract

Mortality differences between university, non-teaching public and for-profit hospitals are investigated using a French exhaustive administrative dataset on patients admitted for heart attack. Our results show that innovative procedures play a key role in explaining the effect of ownership status on hospital quality. When age, sex, diagnoses and co-morbidities are held constant, the mortality rates in for-profit and university hospitals are similar, but they are lower than in public non-teaching hospitals. When additionally controlling for innovative procedures, the mortality rate is higher in for-profit hospitals than in the two groups of public hospitals. This suggests that the quality of care in for-profit hospitals relies on innovative procedures and that, after controlling for case-mix and innovative treatments, there is a better quality of care in public hospitals.

Suggested Citation

  • Gobillon, Laurent & Milcent, Carine, 2012. "Evaluating the Effect of Ownership Status on Hospital Quality: The Key Role of Innovative Procedures," IZA Discussion Papers 7082, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7082
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    Cited by:

    1. Carine Milcent, 2021. "Competition in French hospital: Does it impact the patient management in healthcare?," Working Papers halshs-03152752, HAL.
    2. 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.
    3. Carine Milcent, 2021. "Competition in French hospital: Does it impact the patient management in healthcare?," Working Papers halshs-03152752, HAL.

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    More about this item

    Keywords

    hospital performance; innovative procedures; hospital quality; stratified duration model;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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