Improving Performance Through Allocation and Competition: Evidence from a Patient Choice Reform
Kortelainen, Mika; Laine, Liisa T.; Lavaste, Konsta; Saxell, Tanja; Siciliani, Luigi (2023-10-04)
Laine, Liisa T.
Valtion taloudellinen tutkimuskeskus
Julkaisun pysyvä osoite on
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.
Local public finance and provision of public services
I11, L11, I18, L32, L38
Reallocation, Heterogeneous Producers, Performance, Competition, Concentration, Patient Choice, Market Structure
- VATT Working Papers