Evaluating the Effect of Ownership Status on Hospital Quality: The Key Role of Innovative Procedures

Working Paper: CEPR ID: DP9272

Authors: Laurent Gobillon; Carine Milcent

Abstract: Mortality differences between university, non-teaching public and for-profit hospitals are investigated using a French exhaustive administrative dataset on patients admitted for heart attack. Our results show that innovative procedures play a key role in explaining the effect of ownership status on hospital quality. When age, sex, diagnoses and co-morbidities are held constant, the mortality rates in for-profit and university hospitals are similar, but they are lower than in public non-teaching hospitals. When additionally controlling for innovative procedures, the mortality rate is higher in for-profit hospitals than in the two groups of public hospitals. This suggests that the quality of care in for-profit hospitals relies on innovative procedures and that, after controlling for case-mix and innovative treatments, there is a better quality of care in public hospitals.

Keywords: hospital quality; innovative procedures; stratified duration model

JEL Codes: I12; I18


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
hospital ownership status (L32)in-hospital mortality rates (I14)
for-profit hospitals (L39)in-hospital mortality rates (I14)
innovative procedures (O35)hospital quality (I19)
ownership status (R21)hospital quality (I19)
public hospitals (I18)in-hospital mortality rates (I14)

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