We analyse the effect of competition on quality in hospital markets with regulated prices, considering both the effect of (i) introducing competition (monopoly versus competition) and (ii) increasing competition through lower transportation costs (increased substitutability) or a higher number...

We study the relationship between competition and quality within a spatial competition framework where firms compete in prices and quality. We generalise existing literature on spatial price-quality competition along several dimensions, including utility functions that are non-linear in income...

Prospective payment systems are currently used in many OECD countries, where hospitals are paid a fixed price for each patient treated. We develop a theoretical model to analyse the properties of the optimal fixed prices to be paid to hospitals when no lump-sum transfers are allowed and when the...

The English National Health Service was established in 1948, and has therefore yielded some long time series data on health system performance. Waiting times for inpatient care have been a persistent cause of policy concern since the creation of the NHS. This paper develops a theoretical model...

<OL><LI>Waiting times for elective surgery are a significant health policy concern in approximately half of all OECD countries. The main objectives of the OECD Waiting Times project were to: <I>i)</I> review policy initiatives to reduce waiting times in 12 OECD countries; and <I>ii)</I> to investigate the causes of...</i></i></li></ol>

Waiting times for elective (non-urgent) surgery are a main health policy concern in approximately half of OECD countries. Mean waiting times for elective surgical procedures are above three months in several countries and maximum waiting times can stretch into years. They generate...

This paper studies the impact of hospital competition on waiting times. We use a Salop-type model, with hospitals that differ in (geographical) location and, potentially, waiting time, and two types of patients: high-benefit patients who choose between neighbouring hospitals (competitive...

The English government has encouraged private providers – known as Independent Sector Treatment Centres (ISTCs) – to treat publicly funded (NHS) patients. Providers are paid a fixed price per patient treated, adjusted to reflect geographical differences in input costs. But there may be other...

Waiting times are commonly used as a rationing device in health care and the public sector. We develop a stylised model, which predicts the dynamics of waiting times and waiting lists over time as a function of differing demand and supply parameters. We show that a path with decreasing waiting...

Policy-makers often claim that enhancing patient choice induces more competition among hospitals and may therefore reduce waiting times. This paper tests this claim using 120 English NHS hospitals over the period 1999-2001. Several proxies for the degree of choice (or competition) are...