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How Fair? Competition between Independent and NHS Providers to Supply Non-Emergency Hospital Care to NHS Patients in England


  • Sussex, J.


Written while Labour Government policies still were in force, this Briefing clearly and thoroughly examines non-discretionary cost differences between public and independent providers that may have a serious impact on the effectiveness of competition. Four key differences are identified - corporation tax, value added tax, pension costs and cost of capital. Critical barriers to implementing the competition policy are reviewed.

Suggested Citation

  • Sussex, J., 2009. "How Fair? Competition between Independent and NHS Providers to Supply Non-Emergency Hospital Care to NHS Patients in England," Briefings 000230, Office of Health Economics.
  • Handle: RePEc:ohe:briefg:000230

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    References listed on IDEAS

    1. Sussex, J. & Street, A. eds, 2004. "Activity Based Funding for Hospitals: English Policy, International Experience," Monographs, Office of Health Economics, number 000487.
    2. Propper Carol & Sutton Matt & Whitnall Carolyn & Windmeijer Frank, 2008. "Did 'Targets and Terror' Reduce Waiting Times in England for Hospital Care?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(2), pages 1-27, January.
    3. Dranove, David & Satterthwaite, Mark A., 2000. "The industrial organization of health care markets," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 20, pages 1093-1139, Elsevier.
    4. Dawson, D. & Mountford, L., 2008. "Health Care Services and the Single European Market," Briefings 000240, Office of Health Economics.
    5. Oster, Sharon M., 1999. "Modern Competitive Analysis," OUP Catalogue, Oxford University Press, edition 3, number 9780195119411.
    6. Richard Cookson & Diane Dawson, 2006. "Hospital Competition and Patient Choice in Publicly Funded Health Care," Chapters, in: Andrew M. Jones (ed.), The Elgar Companion to Health Economics, chapter 20, Edward Elgar Publishing.
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    1. Pérotin, Virginie & Zamora, Bernarda & Reeves, Rachel & Bartlett, Will & Allen, Pauline, 2013. "Does hospital ownership affect patient experience? An investigation into public–private sector differences in England," Journal of Health Economics, Elsevier, vol. 32(3), pages 633-646.

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    Incentivising quality;

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health


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