The Impact of Public Reporting Schemes and Market Competition on Hospital Efficiency
In the wake of growing attempts to assess the validity of public reporting, much research has examined the effectiveness of public reporting regarding cost or quality of care. However, relatively little is known about whether transparency through public reporting significantly influences hospital ef...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2021-08-01
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| Series: | Healthcare |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2227-9032/9/8/1031 |
| _version_ | 1797523702885122048 |
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| author | Ahreum Han Keon-Hyung Lee |
| author_facet | Ahreum Han Keon-Hyung Lee |
| author_sort | Ahreum Han |
| collection | DOAJ |
| description | In the wake of growing attempts to assess the validity of public reporting, much research has examined the effectiveness of public reporting regarding cost or quality of care. However, relatively little is known about whether transparency through public reporting significantly influences hospital efficiency despite its emerging expectations for providing value-based care. This study aims to identify the dynamics that transparency brought to the healthcare market regarding hospital technical efficiency, taking the role of competition into account. We compare the two public reporting schemes, All-Payer Claims Database (APCD) and Hospital Compare. Employing Data Envelopment Analysis (DEA) and a cross-sectional time-series Tobit regression analysis, we found that APCD is negatively associated with hospital technical efficiency, while hospitals facing less competition responded significantly to increasingly transparent information by enhancing their efficiency relative to hospitals in more competitive markets. We recommend that policymakers take market mechanisms into consideration jointly with the introduction of public reporting schemes in order to produce the best outcomes in healthcare. |
| first_indexed | 2024-03-10T08:46:46Z |
| format | Article |
| id | doaj.art-58d5e70531cb490c908b834e0bef1ec2 |
| institution | Directory Open Access Journal |
| issn | 2227-9032 |
| language | English |
| last_indexed | 2024-03-10T08:46:46Z |
| publishDate | 2021-08-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Healthcare |
| spelling | doaj.art-58d5e70531cb490c908b834e0bef1ec22023-11-22T07:49:52ZengMDPI AGHealthcare2227-90322021-08-0198103110.3390/healthcare9081031The Impact of Public Reporting Schemes and Market Competition on Hospital EfficiencyAhreum Han0Keon-Hyung Lee1The Department of Health Care Administration, Trinity University, San Antonio, TX 78212, USAAskew School of Public Administration and Policy, Florida State University, Tallahassee, FL 32306, USAIn the wake of growing attempts to assess the validity of public reporting, much research has examined the effectiveness of public reporting regarding cost or quality of care. However, relatively little is known about whether transparency through public reporting significantly influences hospital efficiency despite its emerging expectations for providing value-based care. This study aims to identify the dynamics that transparency brought to the healthcare market regarding hospital technical efficiency, taking the role of competition into account. We compare the two public reporting schemes, All-Payer Claims Database (APCD) and Hospital Compare. Employing Data Envelopment Analysis (DEA) and a cross-sectional time-series Tobit regression analysis, we found that APCD is negatively associated with hospital technical efficiency, while hospitals facing less competition responded significantly to increasingly transparent information by enhancing their efficiency relative to hospitals in more competitive markets. We recommend that policymakers take market mechanisms into consideration jointly with the introduction of public reporting schemes in order to produce the best outcomes in healthcare.https://www.mdpi.com/2227-9032/9/8/1031public reportingtransparencyhealth policyhospital efficiencycompetition |
| spellingShingle | Ahreum Han Keon-Hyung Lee The Impact of Public Reporting Schemes and Market Competition on Hospital Efficiency Healthcare public reporting transparency health policy hospital efficiency competition |
| title | The Impact of Public Reporting Schemes and Market Competition on Hospital Efficiency |
| title_full | The Impact of Public Reporting Schemes and Market Competition on Hospital Efficiency |
| title_fullStr | The Impact of Public Reporting Schemes and Market Competition on Hospital Efficiency |
| title_full_unstemmed | The Impact of Public Reporting Schemes and Market Competition on Hospital Efficiency |
| title_short | The Impact of Public Reporting Schemes and Market Competition on Hospital Efficiency |
| title_sort | impact of public reporting schemes and market competition on hospital efficiency |
| topic | public reporting transparency health policy hospital efficiency competition |
| url | https://www.mdpi.com/2227-9032/9/8/1031 |
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