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The Effect of Competition on Process and Outcome Quality within Hospital Care in the Netherlands

51 Pages Posted: 12 Jan 2011  

Michiel J. Bijlsma

CPB Netherlands Bureau of Economic Policy Analysis; Tilburg Law and Economics Center (TILEC)

Pierre Koning

CPB Netherlands Bureau of Economic Policy Analysis

Victoria Shestalova

Netherlands Bureau for Economic Policy Analysis

Date Written: January 12, 2011

Abstract

This study examines the impact of competition on hospital quality. Our panel covers all Dutch hospitals in the period 2004–2008, in which the transparency of hospital quality information increased substantially. The paper contributes to the existing literature by including both outcome and process indicators of quality. We find that competition explains the cross-sectional differences in process indicators, but not in outcome indicators. In particular, more competition in the hospital’s catchment area leads to more operation cancellations at short notice and more delays of hip fracture injury operations for elderly patients. Both results suggest that competition increases the utilization of operation capacity. At the same time, hospitals that face more competition perform check-ups for chronic patients more frequently and organize diagnostic processes more efficiently.

Keywords: competition in healthcare, quality, voluntary disclosure

JEL Classification: I1, L1

Suggested Citation

Bijlsma, Michiel J. and Koning, Pierre and Shestalova, Victoria, The Effect of Competition on Process and Outcome Quality within Hospital Care in the Netherlands (January 12, 2011). TILEC Discussion Paper No. 2011-002. Available at SSRN: https://ssrn.com/abstract=1738924 or http://dx.doi.org/10.2139/ssrn.1738924

Michiel Bijlsma (Contact Author)

CPB Netherlands Bureau of Economic Policy Analysis ( email )

P.O. Box 80510
2508 GM The Hague, 2585 JR
Netherlands

Tilburg Law and Economics Center (TILEC)

Warandelaan 2
Tilburg, 5000 LE
Netherlands

Pierre Koning

CPB Netherlands Bureau of Economic Policy Analysis ( email )

P.O. Box 80510
2508 GM The Hague, 2585 JR
Netherlands
+31 703383380 (Phone)
+31 703383350 (Fax)

Victoria Shestalova

Netherlands Bureau for Economic Policy Analysis ( email )

2508 GM The Hague
Netherlands

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