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Related Experiment Videos

Does more choice reduce waiting times?

Luigi Siciliani1

  • 1Department of Economics and Related Studies, University of York, UK. ls24@york.ac.uk

Health Economics
|September 24, 2004
PubMed
Summary
This summary is machine-generated.

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Increasing patient choice in healthcare can paradoxically increase hospital waiting times and reduce treatment supply. This finding holds true regardless of hospital payment models, though fixed budgets exacerbate these effects.

Area of Science:

  • Health economics
  • Healthcare management
  • Market analysis

Background:

  • Healthcare markets often feature limited provider choice and significant waiting times for elective treatments.
  • Understanding the impact of patient choice on healthcare supply and waiting times is crucial for effective policy-making.

Purpose of the Study:

  • To model the supply of elective treatments in a duopolistic healthcare market with patient choice based on waiting times.
  • To analyze how increased hospital substitutability affects equilibrium supply, waiting times, and waiting list sizes.
  • To compare these effects under fixed budget and activity-based funding models.

Main Methods:

  • Development of a theoretical economic model of a duopolistic healthcare market.
  • Analysis of equilibrium outcomes under varying degrees of substitutability between hospitals.

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  • Comparative static analysis of the model's predictions under different remuneration schemes.

    • Main Results:

    • Higher substitutability (patient choice) leads to lower treatment supply and longer waiting times.
    • The effect of substitutability on waiting list size is indeterminate.
    • These effects are more pronounced under fixed budget funding compared to activity-based funding.

    Conclusions:

    • Policies designed to increase patient choice in healthcare may not achieve the intended outcome of reducing waiting times.
    • Healthcare market design and provider payment mechanisms significantly influence the effectiveness of patient choice policies.
    • Further research is needed to explore the nuances of provider substitutability and its impact on healthcare access.