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Contribution Details
| Type | Working Paper |
| Scope | Discipline-based scholarship |
| Title | Assessing the quality of public services: does hospital competition crowd out the for-profit quality gap? |
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| Authors |
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| Institution | Centre for Economic Policy Research |
| Series Name | CEPR Discussion Papers |
| Number | 15045 |
| ISSN | 0265-8003 |
| Number of Pages | 29 |
| Date | 2020 |
| Abstract Text | We examine variation in hospital quality across ownership, market concentration and membership of a hospital system. We use a measure of quality derived from the penalties imposed on hospitals under the flagship Hospital Readmissions Reduction Program. We employ a novel estimation approach that extracts latent hospital quality from panel data on penalties and addresses the problem of never- or always-penalized hospitals in short panels. Our quality measure correlates strongly across penalized conditions and with other non-incentivized quality metrics. We document a robust and sizable for-profit quality gap, which is largely crowded out by competition, particularly amongst high-quality and system-organized hospitals. |
| Official URL | https://cepr.org/active/publications/discussion_papers/dp.php?dpno=15045# |
| Other Identification Number | merlin-id:20768 |
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| Keywords | Hospital readmissions, Affordable Care Act, hospital quality, competition |