Evaluating the Effect of Ownership Status on Hospital Quality: The Key Role of Innovative Procedures

Article dans une revue: Mortality differences between university, non-teaching public and for-profit hospitals are investigated using an exhaustive French administrative dataset of patients admitted for heart attack. Our results show that innovative procedures play a key role in explaining the effect of ownership status on hospital quality. When age, sex, diagnoses and co-morbidities are held constant, the mortality rates in for-profit and university hospitals are similar, but they are lower than in non-teaching public hospitals. When additionally controlling for innovative procedures, the mortality rate is higher in for-profit hospitals than in the two groups of public hospitals. This suggests that the quality of care in for-profit hospitals relies on their capacity to perform innovative procedures. A counterfactual exercise shows that if patients in non-teaching public hospitals were treated with innovative procedures following the assignment rule of for-profit hospitals rather than that of non-teaching public hospitals, their probability of death after a duration of 7 days would be 1.8 points lower.

Auteur(s)

Laurent Gobillon, Carine Milcent

Revue
  • Annals of Economics and Statistics
Date de publication
  • 2016
Mots-clés
  • Hospital quality
  • Hospital performance
  • Innovative procedures
  • Stratified duration model JEL code I12
  • I18
Pages
  • 161-186
Version
  • 1