And can also save lives

Jul 29, 2010 14:12 GMT  ·  By
Competition among hospitals in Great Britain lowers the patients' death rate and their overall stay in hospital
   Competition among hospitals in Great Britain lowers the patients' death rate and their overall stay in hospital

Competition among hospitals in Great Britain lowers the patients' death rate and their overall stay in hospital, says a new study carried out by researchers of the University of Bristol. They also found out that this phenomenon did not increase overall expenses.

Hospitals belonging to the National Healthcare System, located in more competitive areas, where patients have more choice, have lower death rates than hospitals located inn less competitive areas. Another observed phenomenon was that competitive hospitals maintained their operating costs and kept all their staff.

The Bristol University’s Center for Market and Public Organization (CMPO) released a report called ‘Death by Market Power: Reform, Competition and Patient Outcomes in the National Health Service’ in which scientists suggested that having a competition between hospitals and patients having much choice, was the most effective money saving method the NHS could find.

Professor Carol Propper, one of the study’s authors said that “The current ‘choose and book’ and fixed price regime in the NHS appears to create clear incentives for hospitals to become more efficient.” She added that given the current need to cut spending everywhere, successful competition in the healthcare system should be promoted by government policy.

“If competition is to work, the Secretary of State must retain price regulation in the NHS. A free-for-all in prices would mean a return to the 'internal market' of the 1990s. We know that these arrangements led to poorer quality in competitive areas, as hospitals competed vigorously on waiting times and ignored aspects of quality that are more difficult to measure,” Professor Propper said.

She added that the Department of Health should not merge hospitals because this could decrease the level of competition and turn into a negative thing for the patients.

A team of researchers from Bristol, Carnegie Mellon University and Imperial College London, analysed NHS data from 2003 to 2007. They funded their analysis on the improvement in death rates after hospital admissions, which is a widely used measure of hospital quality, and found out that in hospitals from more competitive areas were fewer deaths.

Moreover, the beneficial effects of the pro-competition reforms amounted to around £115 million. Also, patients were found to choose hospitals with shorter waiting lists, which is an indication that the public favors a greater choice, and patients came from a wider range of neighborhoods.