Effects of Medical Price Deregulation on Hospital Competition: Evidence from China

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Abstract/Contents

Abstract
In 2014, China partially deregulated her healthcare market where non-for-profit private hospitals could provide basic medical services at competitive market prices. Using 2011-2015 China Health and Retirement Longitudinal Study data, I employed difference-in-difference method to estimate the effects of this reform on utilization, expenditures, and quality of care (measured by doctor detection rate of chronic diseases). I found that probability of outpatient visit decreased by 2.6 percentage points (20%), total and out-of-pocket outpatient medical expenditures increased by 35.5 and 43.7 percentage points, and doctor detection rate of cancers increased by 0.5 percentage point (1%). The results were robust to different treated groups and placebo tests. My findings indicated that the deregulation raised the price of outpatient medical services and quality of care for cancers but had no impact on type of services, implying that hospitals competed for patients using price and quality, but not at type of service level.

Description

Type of resource text
Date created June 3, 2019

Creators/Contributors

Author Qu, Tingting
Primary advisor Miller, Grant
Advisor Bundorf, Kate
Advisor Bhattacharya, Jay
Degree granting institution Stanford University, Department of Health Research & Policy

Subjects

Subject Price Deregulation
Subject Hospital Competition
Subject Healthcare
Subject China
Genre Thesis

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User agrees that, where applicable, content will not be used to identify or to otherwise infringe the privacy or confidentiality rights of individuals. Content distributed via the Stanford Digital Repository may be subject to additional license and use restrictions applied by the depositor.
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This work is licensed under a Creative Commons Attribution 3.0 Unported license (CC BY).

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Preferred Citation
Qu, Tingting. (2019). Effects of Medical Price Deregulation on Hospital Competition: Evidence from China. Stanford Digital Repository. Available at: https://purl.stanford.edu/wb986qg5147

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