Improving Performance Through Allocation and Competition: Evidence from a Patient Choice Reform

Mika Kortelainen, Liisa T. Laine, Konsta Lavaste, Tanja Saxell, Luigi Siciliani

Research output: Working paperScientific

Abstract

We study the allocative effects of enhancing consumer choice and non-price competition in markets with heterogeneous producers. We use comprehensive administrative data and a difference-in-differences design based on the introduction of a regional patient choice reform for planned surgeries in Finland. We find that large teaching hospitals attracted more patients and concentration increased in their markets. Waiting times decreased in hospitals exposed to the reform and more patients were treated, with little effect on clinical quality or average surgical expenditure after the reform. Our results suggest that increased choice can reallocate patients towards large producers and improve public hospital performance.
Original languageEnglish
PublisherValtion taloudellinen tutkimuskeskus (VATT)
Number of pages39
Publication statusPublished - 4 Oct 2023
MoE publication typeD4 Published development or research report or study

Publication series

NameVATT working papers
No.156
ISSN (Print)1798-0283
ISSN (Electronic)1798-0291

Keywords

  • reallocation
  • heterogeneous producers
  • performance
  • competition
  • concentration
  • patient choice
  • market structure

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