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Hospital Competition in the Netherlands : An Empirical Investigation

Author

Listed:
  • Berden, Carolien
  • Croes, R.
  • Kemp, R.
  • Mikkers, Misja

    (Tilburg University, Center For Economic Research)

  • van der Noll, Rob
  • Shestalova, V.

    (Tilburg University, Center For Economic Research)

  • Svitak, Jan

    (Tilburg University, Center For Economic Research)

Abstract

The Dutch government introduced managed competition to the health care sec- tor in 2006. In this regulatory framework insurers compete for enrollees and providers compete for contracts with insurers. The resulting contracts are de- termined by bargaining, which outcome depends on the relative position of the provider. In this paper, we compare how commonly used market power indi- cators predict bargaining outcomes. We combine 2013 transaction data with bilateral contract data. Our empirical models explain the relative dierences in hospitals' revenues while controlling for dierences in the complexity of patients. Four indicators are used: the logit competition index (LOCI), willingness-to-pay (WTP), Elzinga-Hogarty market share and a rule-of-thumb market share. We nd that WTP and LOCI perform best empirically.

Suggested Citation

  • Berden, Carolien & Croes, R. & Kemp, R. & Mikkers, Misja & van der Noll, Rob & Shestalova, V. & Svitak, Jan, 2019. "Hospital Competition in the Netherlands : An Empirical Investigation," Discussion Paper 2019-018, Tilburg University, Center for Economic Research.
  • Handle: RePEc:tiu:tiucen:5302ab6a-9099-4b5d-9874-8045cd12ab86
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    hospital competition; market power; bargaining;

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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