Hospital Choice for Cataract Treatments: The Winner Takes Most

Background Transparency in quality of care is an increasingly important issue in healthcare. In many international healthcare systems, transparency in quality is crucial for health insurers when purchasing care on behalf of their consumers, for providers to improve the quality of care (if necessary...

Full description

Bibliographic Details
Main Authors: Suzanne Ruwaard, Rudy C M H Douven
Format: Article
Language:English
Published: Kerman University of Medical Sciences 2018-12-01
Series:International Journal of Health Policy and Management
Subjects:
Online Access:http://www.ijhpm.com/article_3535_79a2970ed771086bd1baba6744c61801.pdf
_version_ 1819152385847590912
author Suzanne Ruwaard
Rudy C M H Douven
author_facet Suzanne Ruwaard
Rudy C M H Douven
author_sort Suzanne Ruwaard
collection DOAJ
description Background Transparency in quality of care is an increasingly important issue in healthcare. In many international healthcare systems, transparency in quality is crucial for health insurers when purchasing care on behalf of their consumers, for providers to improve the quality of care (if necessary), and for consumers to choose their provider in case treatment is needed. Conscious consumer choices incentivize healthcare providers to deliver better quality of care. This paper studies the impact of quality on patient volume and hospital choice, and more specifically whether high quality providers are able to attract more patients. Methods The dataset covers the period 2006-2011 and includes all patients who underwent a cataract treatment in the Netherlands. We first estimate the impact of quality on volume using a simple ordinary least squares (OLS), second we use a mixed logit to determine how patients make trade-offs between quality, distance and waiting time in provider choice. Results At the aggregate-level we find that, a one-point quality increase, on a scale of one to a hundred, raises patient volume for the average hospital by 2-4 percent. This effect is mainly driven by the hospital with the highest quality score: the effect halves after excluding this hospital from the dataset. Also at the individual-level, all else being equal, patients have a stronger preference for the hospital with the highest quality score, and appear indifferent between the remaining hospitals. Conclusion Our results suggest that the top performing hospital is able to attract significantly more patients than the remaining hospitals. We find some evidence that a small share of consumers may respond to quality differences, thereby contributing to incentives for providers to invest in quality and for insurers to take quality into account in the purchasing strategy.
first_indexed 2024-12-22T14:48:27Z
format Article
id doaj.art-42981cb9870e4e83932d6047566bf972
institution Directory Open Access Journal
issn 2322-5939
2322-5939
language English
last_indexed 2024-12-22T14:48:27Z
publishDate 2018-12-01
publisher Kerman University of Medical Sciences
record_format Article
series International Journal of Health Policy and Management
spelling doaj.art-42981cb9870e4e83932d6047566bf9722022-12-21T18:22:22ZengKerman University of Medical SciencesInternational Journal of Health Policy and Management2322-59392322-59392018-12-0171211201129Hospital Choice for Cataract Treatments: The Winner Takes MostSuzanne Ruwaard0Rudy C M H Douven1Netherlands Bureau for Economic Policy Analysis (CPB), Den Haag, The NetherlandsNetherlands Bureau for Economic Policy Analysis (CPB), Den Haag, The NetherlandsBackground Transparency in quality of care is an increasingly important issue in healthcare. In many international healthcare systems, transparency in quality is crucial for health insurers when purchasing care on behalf of their consumers, for providers to improve the quality of care (if necessary), and for consumers to choose their provider in case treatment is needed. Conscious consumer choices incentivize healthcare providers to deliver better quality of care. This paper studies the impact of quality on patient volume and hospital choice, and more specifically whether high quality providers are able to attract more patients. Methods The dataset covers the period 2006-2011 and includes all patients who underwent a cataract treatment in the Netherlands. We first estimate the impact of quality on volume using a simple ordinary least squares (OLS), second we use a mixed logit to determine how patients make trade-offs between quality, distance and waiting time in provider choice. Results At the aggregate-level we find that, a one-point quality increase, on a scale of one to a hundred, raises patient volume for the average hospital by 2-4 percent. This effect is mainly driven by the hospital with the highest quality score: the effect halves after excluding this hospital from the dataset. Also at the individual-level, all else being equal, patients have a stronger preference for the hospital with the highest quality score, and appear indifferent between the remaining hospitals. Conclusion Our results suggest that the top performing hospital is able to attract significantly more patients than the remaining hospitals. We find some evidence that a small share of consumers may respond to quality differences, thereby contributing to incentives for providers to invest in quality and for insurers to take quality into account in the purchasing strategy.http://www.ijhpm.com/article_3535_79a2970ed771086bd1baba6744c61801.pdfhospital demandpatient choicequality indicatorsquality competition
spellingShingle Suzanne Ruwaard
Rudy C M H Douven
Hospital Choice for Cataract Treatments: The Winner Takes Most
International Journal of Health Policy and Management
hospital demand
patient choice
quality indicators
quality competition
title Hospital Choice for Cataract Treatments: The Winner Takes Most
title_full Hospital Choice for Cataract Treatments: The Winner Takes Most
title_fullStr Hospital Choice for Cataract Treatments: The Winner Takes Most
title_full_unstemmed Hospital Choice for Cataract Treatments: The Winner Takes Most
title_short Hospital Choice for Cataract Treatments: The Winner Takes Most
title_sort hospital choice for cataract treatments the winner takes most
topic hospital demand
patient choice
quality indicators
quality competition
url http://www.ijhpm.com/article_3535_79a2970ed771086bd1baba6744c61801.pdf
work_keys_str_mv AT suzanneruwaard hospitalchoiceforcataracttreatmentsthewinnertakesmost
AT rudycmhdouven hospitalchoiceforcataracttreatmentsthewinnertakesmost