Centralized Procurement and Delivery Times: Evidence from a Natural Experiment in Italy

Abstract

We study how delivery times and prices for hospital medical devices respond to the introduction of centralized procurement. Our identification strategy leverages a legislative change in Italy that mandated centralized purchases for a sub-set of devices. The statutory centralization generated a reduction in prices and an increase in delivery times for centralized purchases relative to non-centralized purchases. We use data on quantities and on suppliers to discuss the mechanisms potentially underlying our findings.

Keywords: Public Procurement, Centralization, Medical Devices, Delivery Times, Bulk Purchasing

JEL Classification: D44, H51, H57, I18