Spatial Competition and Quality: Evidence from the English Family Doctor Market

50 Pages Posted: 15 May 2018

See all articles by Hugh Gravelle

Hugh Gravelle

University of York, Centre for Health Economics

Dan Liu

University of York

Carol Propper

Imperial College London Business School; Centre for Economic Policy Research (CEPR); University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO)

Rita Santos

University of York - Centre for Health Economics

Date Written: May 2018

Abstract

We examine whether family doctor firms in England respond to local competition by increasing their quality. We measure quality in terms of clinical performance and patient-reported satisfaction to capture its multi-dimensional nature. We use a panel covering 8 years for over 8000 English general practices, allowing us to control for unobserved local area effects. We measure competition by the number of rival doctors within a small distance. We find that increases in local competition are associated with increases in clinical quality and patient satisfaction, particularly for firms with lower quality. However, the magnitude of the effect is small.

Keywords: Quality; healthcare; choice; competition; family physicians

JEL Classification: I11, I18

Suggested Citation

Gravelle, Hugh S. and Liu, Dan and Propper, Carol and Santos, Rita, Spatial Competition and Quality: Evidence from the English Family Doctor Market (May 2018). CEPR Discussion Paper No. DP12917. Available at SSRN: https://ssrn.com/abstract=3178085

Hugh S. Gravelle (Contact Author)

University of York, Centre for Health Economics ( email )

Alcuin A Block
University of York
York, YO10 5DD
United Kingdom

Dan Liu

University of York ( email )

Heslington
University of York
York, YO10 5DD
United Kingdom

Carol Propper

Imperial College London Business School ( email )

South Kensington Campus
Exhibition Road
London SW7 2AZ, SW7 2AZ
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO) ( email )

12 Priory Road
Bristol BS8 1TN
United Kingdom

HOME PAGE: http://www.bris.ac.uk/Depts/Economics/department/profiles/propper.htm

Rita Santos

University of York - Centre for Health Economics ( email )

York YO10 5DD
United Kingdom

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