Longo, Francesco orcid.org/0000-0002-1833-7328, Siciliani, Luigi orcid.org/0000-0003-1739-7289 and Street, Andrew David orcid.org/0000-0002-2540-0364 (2017) Are costs differences between specialist and general hospitals compensated by the prospective payment system? European Journal of Health Economics. ISSN 1618-7601
Abstract
Prospective payment systems fund hospitals based on a fixed-price regime that does not directly distinguish between specialist and general hospitals. We investigate whether current prospective payments in England compensate for differences in costs between specialist orthopaedic hospitals and trauma and orthopaedics departments in general hospitals. We employ reference cost data for a sample of hospitals providing services in the trauma and orthopaedics specialty. Our regression results suggest that specialist orthopaedic hospitals have on average 13% lower profit margins. Under the assumption of break-even for the average trauma and orthopaedics department, two of the three specialist orthopaedic hospitals appear to make a loss on their activity. The same holds true for 33% of departments in our sample. Patient age and severity are the main drivers of such differences.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © The Author(s) 2017. This is an author-produced version of the published paper. Uploaded in accordance with the publisher’s self-archiving policy. Further copying may not be permitted; contact the publisher for details |
Keywords: | specialist hospitals,orthopaedics,hospital costs,HRG,tariff,reference costs |
Dates: |
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Institution: | The University of York |
Academic Units: | The University of York > Faculty of Social Sciences (York) > Economics and Related Studies (York) The University of York > Faculty of Social Sciences (York) > Centre for Health Economics (York) |
Depositing User: | Pure (York) |
Date Deposited: | 09 Nov 2017 14:13 |
Last Modified: | 16 Oct 2024 14:08 |
Published Version: | https://doi.org/10.1007/s10198-017-0935-1 |
Status: | Published online |
Refereed: | Yes |
Identification Number: | 10.1007/s10198-017-0935-1 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:123764 |
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