Hospital Competition, Technical Efficiency and Quality

Chew Lian Chua, Alfons Palangkaraya, Jongsay Yong

Research output: Journal PublicationArticlepeer-review

14 Citations (Scopus)

Abstract

This paper studies the link between competition and technical efficiency of public hospitals in the state of Victoria, Australia. It finds a positive relationship between efficiency and competition as measured by the Hirschman-Herfindahl Index (HHI) and a negative relationship when the number of competing private hospitals is used instead of HHI. It also finds that whether or not quality is treated as an endogenous output variable influences the statistical estimates of the link between efficiency and competition. The findings point to possibly undesirable resource allocation effects when public hospitals are made to compete with a large number of private hospitals.

Original languageEnglish
Pages (from-to)252-268
Number of pages17
JournalEconomic Record
Volume87
Issue number277
DOIs
Publication statusPublished - Jun 2011
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics

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