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Outsourcing day surgery to private for-profit hospitals: the price effects of competitive tendering

Health economics, policy and law, 2018-01, Vol.13 (1), p.50-67 [Peer Reviewed Journal]

Cambridge University Press 2017 ;info:eu-repo/semantics/openAccess ;ISSN: 1744-1331 ;EISSN: 1744-134X ;DOI: 10.1017/S1744133117000019 ;PMID: 28382886

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Title:
Outsourcing day surgery to private for-profit hospitals: the price effects of competitive tendering
Author: Hagen, Terje P. ; Holom, Geir Hiller ; Amayu, Kebebew N.
Subjects: Acute services ; Competition ; Cost control ; Day hospitals ; Day surgery ; Elective surgery ; Funding ; Health care ; Health care industry ; Health care policy ; Health economics ; Hospitals ; Local government ; Millennium ; Outsourcing ; Patients ; Prices ; Private hospitals ; Private sector ; Privatization ; Profits ; Public private partnerships ; Public sector ; Public services ; Reforms ; Surgery ; Taxation ; Teaching ; Tendering
Is Part Of: Health economics, policy and law, 2018-01, Vol.13 (1), p.50-67
Description: Setting prices for elective patient treatments in private for-profit (PFP) hospitals in traditional tax-funded health systems is challenging since both the organisation of these hospitals and the tasks they perform differ considerably from what we find in public hospitals. From the year 2000, Norway became one of a few countries to gradually implement a procurement system based on competitive tendering when outsourcing elective surgery. In this study we analyse the effect of introducing competitive tendering on the prices paid to PFP hospitals. Pricing data were collected from the formal contracts awarded to PFP hospitals and defined in terms of both absolute and relative prices. We found that PFP hospitals performed day surgeries at markedly lower prices than public hospitals and that competitive tendering triggered the price reduction. We speculate that the PFP hospitals’ lack of acute services, less severe patient population, reduced teaching responsibilities and ability to streamline production, as well as other factors, explain the lower prices at PFP hospitals.
Publisher: Cambridge, UK: Cambridge University Press
Language: English;Norwegian
Identifier: ISSN: 1744-1331
EISSN: 1744-134X
DOI: 10.1017/S1744133117000019
PMID: 28382886
Source: NORA Norwegian Open Research Archives
ProQuest Central

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Outsourcing day surgery to private for-profit hospitals: the price effects of competitive tendering

Cambridge University Press 2017 ;info:eu-repo/semantics/openAccess ;ISSN: 1744-1331 ;EISSN: 1744-134X ;DOI: 10.1017/S1744133117000019 ;PMID: 28382886

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