Discussion Paper Details

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Title: Evaluating the effect of ownership status on hospital quality: the key role of innovative procedures

Author(s): Laurent Gobillon and Carine Milcent

Publication Date: January 2013

Keyword(s): Hospital quality, Innovative procedures and Stratified duration model

Programme Area(s): Public Economics

Abstract: Mortality differences between university, non-teaching public and for-profit hospitals are investigated using a French exhaustive administrative dataset on 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 public non-teaching 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 innovative procedures and that, after controlling for case-mix and innovative treatments, there is a better quality of care in public hospitals.

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Bibliographic Reference

Gobillon, L and Milcent, C. 2013. 'Evaluating the effect of ownership status on hospital quality: the key role of innovative procedures'. London, Centre for Economic Policy Research.