Hospital Multi-dimensional Quality Competition with Medical Malpractice

Hospital Multi-dimensional Quality Competition with Medical Malpractice

Hospital Multi-dimensional Quality Competition with Medical Malpractice

Aucun commentaire sur Hospital Multi-dimensional Quality Competition with Medical Malpractice

Bell-Aldeghi, R., & Chopard, B. (2021). Hospital Multi-dimensional Quality Competition with Medical Malpractice. International Review of Law and Economics, 106025.

https://doi.org/10.1016/j.irle.2021.106025

Abstract

In this paper, we study the effect of competition on the plural dimensions of hospital quality in a market with regulated prices. Our results are obtained with the standard model of hospital competition where a distinction can now be made between two different dimensions of quality while using fair general demand and cost structure. In our setting, hospitals can choose to invest either in the quality of health care services which reduces exposition to the risk of medical error, or in another dimension of quality which is independent to the risk of medical malpractice (appropriateness, patient-centeredness, amenities, etc.). We derive the conditions under which an intensified competition can not only raise or decrease hospital quality, but can also lead to a substitution between the two dimensions of quality. We also investigate how hospital competition and tort law may interact to help improve quality of care by deterring negligent behaviors of providers of care. Lastly, we use a model of strategic pretrial negotiation under asymmetric information to examine the effect of hospital competition on the resolution of medical disputes through its effect on quality.

Keywords

Hospital competition, Quality, Medical malpractice, Litigation

JEL classification

I11, L13, K13, K41
ADRESSE
45 rue des Saints Pères - 75006 Paris
TELEPHONE & MAIL
01 42 86 20 71 - liraes@parisdescartes.fr


logo_liraes

Back to Top