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Competition Between Public and Private Maternity Care Providers in France: Evidence on Market Segmentation

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  • Herrera-Araujo, D.;
  • Rochaix, L.;

Abstract

The French market for hospital care is shared by public and private providers. In addition to covering a number of mandates usually not undertaken by the private sector such as training, research, and disease prevention, public hospitals are required to provide basic care across the French territory. To investigate the existence of market segmentation between public and private care providers, we focus on maternity care and first examine to what extent public and private maternity units substitute each other on an extensive margin, to then analyze how competition plays out on an intensive margin. Consistent with the public mandate, our findings indicate that, after a private unit closure, public maternity units are less likely to exit a low-populated area than a high-populated area. In addition, we find evidence of an asymmetric intensive margin substitution between private and public maternity units. Maternity users tend to substitute private units (non for-profit and for-profit) for public units more often than the reverse.

Suggested Citation

  • Herrera-Araujo, D.; & Rochaix, L.;, 2019. "Competition Between Public and Private Maternity Care Providers in France: Evidence on Market Segmentation," Health, Econometrics and Data Group (HEDG) Working Papers 19/11, HEDG, c/o Department of Economics, University of York.
  • Handle: RePEc:yor:hectdg:19/11
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    References listed on IDEAS

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    More about this item

    Keywords

    maternity units; substitution; demand estimation; public-private;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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