PMID: 9639333Jun 25, 1998Paper

Competition in the NHS internal market: an overview of its effects on hospital prices and costs

Health Economics
C Propper, N Söderlund

Abstract

The 1989 reforms of the UK National Health Service (NHS) introduced competition in the supply of hospital services. This paper synthesizes both the theory underlying the introduction of competition into the NHS, and the limited existing evidence on whether competition affects the prices posted by sellers of medical services, and the costs of producing these services. The results indicate high levels of price variability, widespread disregard for average cost pricing rules and some indication that competition had some effect on prices. It appears that lower prices may be offered to smaller purchasers, such as General Practice Fund Holders (GPFH). This effect of competition on price was mirrored, with a delay, in hospital costs.

Citations

Jul 21, 2000·Health Economics·J Grytten, R Sørensen
Mar 19, 2002·Health Policy·David K Whynes, Darrin L Baines
Aug 4, 2005·Applied Health Economics and Health Policy·Russell MannionAngela Bate
Feb 3, 2016·The European Journal of Health Economics : HEPAC : Health Economics in Prevention and Care·Y J F M Krabbe-AlkemadeM Lindeboom
Jan 24, 2007·Health Economics·Luigi Siciliani, Steve Martin
Dec 8, 2011·Health Economics·Carol Propper
Feb 24, 2001·The International Journal of Health Planning and Management·J Puig-Junoy
Jun 22, 2000·International Journal of Health Services : Planning, Administration, Evaluation·S Iliffe, J Munro
May 19, 2010·Health Economics, Policy, and Law·Gwyn Bevan, Wynand P M M van de Ven
Jun 25, 2008·Journal of Health Services Research & Policy·Marianna FotakiLiz Smith
Feb 9, 2018·Health Economics, Policy, and Law·Carol Propper
Sep 13, 2003·The International Journal of Health Planning and Management·Kehui LiuRainer Sauerborn

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