The Impact of Public Reporting Schemes and Market Competition on Hospital Efficiency

doi:10.3390/healthcare9081031

. 2021 Aug 11;9(8):1031.

doi: 10.3390/healthcare9081031.

The Impact of Public Reporting Schemes and Market Competition on Hospital Efficiency

Ahreum Han¹, Keon-Hyung Lee²

Affiliations

¹ The Department of Health Care Administration, Trinity University, San Antonio, TX 78212, USA.
² Askew School of Public Administration and Policy, Florida State University, Tallahassee, FL 32306, USA.

PMID: 34442168
PMCID: PMC8391365
DOI: 10.3390/healthcare9081031

The Impact of Public Reporting Schemes and Market Competition on Hospital Efficiency

Ahreum Han et al. Healthcare (Basel). 2021.

. 2021 Aug 11;9(8):1031.

doi: 10.3390/healthcare9081031.

Authors

Ahreum Han¹, Keon-Hyung Lee²

Affiliations

¹ The Department of Health Care Administration, Trinity University, San Antonio, TX 78212, USA.
² Askew School of Public Administration and Policy, Florida State University, Tallahassee, FL 32306, USA.

PMID: 34442168
PMCID: PMC8391365
DOI: 10.3390/healthcare9081031

Abstract

In the wake of growing attempts to assess the validity of public reporting, much research has examined the effectiveness of public reporting regarding cost or quality of care. However, relatively little is known about whether transparency through public reporting significantly influences hospital efficiency despite its emerging expectations for providing value-based care. This study aims to identify the dynamics that transparency brought to the healthcare market regarding hospital technical efficiency, taking the role of competition into account. We compare the two public reporting schemes, All-Payer Claims Database (APCD) and Hospital Compare. Employing Data Envelopment Analysis (DEA) and a cross-sectional time-series Tobit regression analysis, we found that APCD is negatively associated with hospital technical efficiency, while hospitals facing less competition responded significantly to increasingly transparent information by enhancing their efficiency relative to hospitals in more competitive markets. We recommend that policymakers take market mechanisms into consideration jointly with the introduction of public reporting schemes in order to produce the best outcomes in healthcare.

Keywords: competition; health policy; hospital efficiency; public reporting; transparency.

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Conflict of interest statement

The authors declare no conflict of interest.

Figures

**Figure 1**
Model of the effects of public reporting and competition on efficiency.

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[1] Kordzadeh N. Toward Quality Transparency in Healthcare: Exploring Hospital-Operated Online Physician Review Systems in Northeastern United States. Health Policy Technol. 2020;9:56–61. doi: 10.1016/j.hlpt.2019.11.003. - DOI

[2] Kordzadeh N. Toward Quality Transparency in Healthcare: Exploring Hospital-Operated Online Physician Review Systems in Northeastern United States. Health Policy Technol. 2020;9:56–61. doi: 10.1016/j.hlpt.2019.11.003. - DOI

[3] Lindenauer P.K., Lagu T., Ross J.S., Pekow P.S., Shatz A., Hannon N., Rothberg M.B., Benjamin E.M. Attitudes of Hospital Leaders toward Publicly Reported Measures of Health Care Quality. JAMA Intern. Med. 2014;174:1904–1911. doi: 10.1001/jamainternmed.2014.5161. - DOI - PMC - PubMed

[4] Lindenauer P.K., Lagu T., Ross J.S., Pekow P.S., Shatz A., Hannon N., Rothberg M.B., Benjamin E.M. Attitudes of Hospital Leaders toward Publicly Reported Measures of Health Care Quality. JAMA Intern. Med. 2014;174:1904–1911. doi: 10.1001/jamainternmed.2014.5161. - DOI - PMC - PubMed

[5] Berwick D.M., Nolan T.W., Whittington J. The Triple Aim: Care, Health, and Cost. Health Aff. 2008;27:759–769. doi: 10.1377/hlthaff.27.3.759. - DOI - PubMed

[6] Berwick D.M., Nolan T.W., Whittington J. The Triple Aim: Care, Health, and Cost. Health Aff. 2008;27:759–769. doi: 10.1377/hlthaff.27.3.759. - DOI - PubMed

[7] Hut N. CMS Is Preparing to Make Noncompliance with Price Transparency Requirements Much More Expensive. Healthcare Financial Management Association; Westchester, IL, USA: 2021.

[8] Hut N. CMS Is Preparing to Make Noncompliance with Price Transparency Requirements Much More Expensive. Healthcare Financial Management Association; Westchester, IL, USA: 2021.

[9] Burstin H., Leatherman S., Goldmann D. The Evolution of Healthcare Quality Measurement in the United States. J. Intern. Med. 2016;279:154–159. doi: 10.1111/joim.12471. - DOI - PubMed

[10] Burstin H., Leatherman S., Goldmann D. The Evolution of Healthcare Quality Measurement in the United States. J. Intern. Med. 2016;279:154–159. doi: 10.1111/joim.12471. - DOI - PubMed

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The Impact of Public Reporting Schemes and Market Competition on Hospital Efficiency

Affiliations

The Impact of Public Reporting Schemes and Market Competition on Hospital Efficiency

Authors

Affiliations

Abstract

Conflict of interest statement

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References

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