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. 2011 Aug;121(554):F228-F260.
doi: 10.1111/j.1468-0297.2011.02449.x.

Does Hospital Competition Save Lives? Evidence from the English NHS Patient Choice Reforms

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Does Hospital Competition Save Lives? Evidence from the English NHS Patient Choice Reforms

Zack Cooper et al. Econ J (London). 2011 Aug.

Abstract

Recent substantive reforms to the English National Health Service expanded patient choice and encouraged hospitals to compete within a market with fixed prices. This study investigates whether these reforms led to improvements in hospital quality. We use a difference-in-difference-style estimator to test whether hospital quality (measured using mortality from acute myocardial infarction) improved more quickly in more competitive markets after these reforms came into force in 2006. We find that after the reforms were implemented, mortality fell (i.e. quality improved) for patients living in more competitive markets. Our results suggest that hospital competition can lead to improvements in hospital quality.

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Figures

Figure 1
Figure 1
Timeline for the Second Wave of NHS Market-based Reforms (2001–8)
Figure 2
Figure 2
Changes in Predicted Mortality Rates Over Time in Monopoly Markets with One-Site Providing Care and in Markets in the Most Competitive Decile of Our Market Structure Index

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