Competition in the provision of hospital care: Are mixed markets a valid alternative?

What is it about?

Our article answers the following policy question: hospiltal competition where a public hospital compete with private one improves welfare? We show that this market form is superior if patients value public provision. In general it may increase the profit of the private hospitals competiing with the public one; for this reason the use of monopoly franchises may help redistributing the benefits of this market form.

Featured Image

Why is it important?

Mixed markets where public hospitals compete with provate one are increasingly used in health care provision in spite of mixed evidences on their performances. Our contribution shows what are the advantages and also how it is possible to improve welfare by an appropriate choice of hospital competition