Sunday 3 November 2013

"We find that the effect of competition is to save lives without raising costs."

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But the NHS! Competition is evil, etc. etc. ad nauseum. Mostly from those whose comfortable positions might be affected by a bit of honest. Or maybe these are the sort of academics who - because their conclusions challenge the current anti-competition orthodoxy - are not to be believed:

The effect of competition on the quality of health care remains a contested issue. Most empirical estimates rely on inference from nonexperimental data. In contrast, this paper exploits a procompetitive policy reform to provide estimates of the impact of competition on hospital outcomes. The English government introduced a policy in 2006 to promote competition between hospitals. Using this policy to implement a difference-in-differences research design, we estimate the impact of the introduction of competition on not only clinical outcomes but also productivity and expenditure. We find that the effect of competition is to save lives without raising costs.

And it's worth noting that this isn't the first such finding about competition and public service delivery.

So people will shut up now and support more competition in UK healthcare provision?

(h/t ASI where there's comment here)
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