Patients’ choice and hospital quality competition: Unintended impacts of the signals

Tuesday 10 July 2018, 2.00PM to 3.15pm

Speaker(s): Professor Mireia Jofre-Bonet, City, University of London

Abstract: Patients’ choice is central to the recent reforms of the NHS and it relies on quality indicators being publicly available. We write a model in which patients can choose hospitals and hospitals choose their treatment quality. As is standard, consumers’ willingness to pay for quality - and to acquire information on quality - is increasing in wealth. Consumers aim to maximize the quality of the treatment received. Hospital quality indicators are available to patients with a certain precision. We find that the precision with which quality is released may increase the disparity of treatments across the wealth distribution. We test some of the implications of this model using the Hospital Episodes Statistics for England and we find that wealthier individuals in lower income areas exercise choice to a greater degree than their less wealthy neighbours and individuals tend to use GP defined choice sets. These findings are consistent with our choice model and empirical models of rationally inattentive choice.

Location: ARRC Auditorium A/RC/014

Who to contact

For more information on these seminars, contact:

Maria Jose Aragon
Jessica Ochalek

CHE Seminar Programme

  • Monday 21 January
    Professor Rachel Baker, Yunus Centre for Social Business and Health
  • Thursday 7 February
    Professor Philip Clarke, The Universities of Melbourne and Oxford
  • Thursday 7 March
    Professor Sonia Bhalhotra, University of Essex 
  • Thursday 4 April 
    Eugenio Zucchelli, Lancaster University
  • Monday 13 May
    Davide Rasella, Fiocruz Brazil
  • Thursday 4 July
    Stephanie von Hinke Kessler Scholder, Bristol University
  • Thursday 5 September
    Jose-Luis Fernandez, LSE 
  • Thursday 3 October
    Soren Rud Kristensen, Imperial
  • Thursday 7 November
    Linda Davies, Manchester University
  • Wednesday 5 December
    Mandy Ryan, HERU, University of Aberdeen