Previous article


What role for competition in the hospital sector ?

In most European countries hospital care is funded through prospective payment systems with regulated prices. Hospitals compete in quality to attract patients. The welfare effects of competition are widely discussed in the economic literature. In France the payment rule has been criticized for giving hospitals excessive incentives to compete and insufficient incentives to cooperate. In response to these critics, a reform passed in 2015 has mandated close cooperation between public hospitals. Whether potential synergies will materialize and care quality will improve remains to be seen. Finding a better balance between competition and coordination in the hospital sector is a challenge for regulators.

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. In an article with the evocative title, "Death by Market Power: Reform, Competition, and Patient Outcomes in the National Health Service", published in 2013 in the American Economic Journal, Martin Gaynor, Rodrigo Moreno-Serra and Carol Propper studied the impact of the 2006 reform of the British National Health Service (NHS). This reform introduced market mechanisms into the operation of the NHS. Previously, the funding of hospitals was essentially based on their past activity, and patients were automatically referred to an institution based on their home address. In extreme cases, depending on which side of the street they lived on, patients could be

Access to this article is restricted to subscribers

Already Subscribed? Sign-in

Access to this article is restricted to subscribers.

Read one article for free

Sign-up to read this article for free and discover our services.


PDF Version



Philippe Choné, What role for competition in the hospital sector ?, February 2017, Concurrences N° 1-2017, Art. N° 83406,

Visites 1144

All reviews