Competition in the NHS internal market: an overview of its effects on hospital prices and costs

The 1989 reforms of the UK National Health Service (NHS) introduced competition in the supply of hospital services. This paper synthesizes both the theory underlying the introduction of competition into the NHS, and the limited existing evidence on whether competition affects the prices posted by se...

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Veröffentlicht in:Health economics 1998-05, Vol.7 (3), p.187-197
Hauptverfasser: Propper, Carol, Söderlund, Neil
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container_title Health economics
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creator Propper, Carol
Söderlund, Neil
description The 1989 reforms of the UK National Health Service (NHS) introduced competition in the supply of hospital services. This paper synthesizes both the theory underlying the introduction of competition into the NHS, and the limited existing evidence on whether competition affects the prices posted by sellers of medical services, and the costs of producing these services. The results indicate high levels of price variability, widespread disregard for average cost pricing rules and some indication that competition had some effect on prices. It appears that lower prices may be offered to smaller purchasers, such as General Practice Fund Holders (GPFH). This effect of competition on price was mirrored, with a delay, in hospital costs. © 1998 John Wiley & Sons, Ltd.
doi_str_mv 10.1002/(SICI)1099-1050(199805)7:3<187::AID-HEC349>3.0.CO;2-F
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source MEDLINE; RePEc; Wiley Journals; Applied Social Sciences Index & Abstracts (ASSIA)
subjects Competition
Economic aspects
Economic Competition
Economics, Hospital
Efficiency, Organizational
Factors
Health Care Reform
Hospital Costs
Hospitals
Humans
Internal market
internal markets
National Health Service
National health services
pricing behaviour
Quality of Health Care
State Medicine - economics
United Kingdom
title Competition in the NHS internal market: an overview of its effects on hospital prices and costs
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