Competition Saves Lives and Money

In 2006 Britain attempted to inject an element of competition into their National Health System (NHS). Patients were given information on hospital quality and timeliness of care. Patients were also allowed to receive care at the NHS hospital of their choice — although reimbursements were set by a central DRG system.

A new study from the National Bureau of Economic Research finds hospital competition results in higher quality without raising the cost of care.  Patients treated in NHS regions with more competition had shorter lengths of stay and were less likely to die.  An estimated 3,354 life years were saved.

Comments (6)

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  1. Ken says:

    Competition works. Even in socialist health care systems.

  2. Joe S. says:

    Let’s see, what head of CMS was telling every body just the other day that the British NHS proved that competition was bad and monopoly was good in health care?

  3. Tom H. says:

    Joe, maybe they will make this study required reading at the White House.

  4. Devon Herrick says:

    It shouldn’t be a foreign concept that when hospitals compete for patients they must improve their performance.

  5. Rusty W. says:

    Wasn’t it Don Berwick (Obama’s appointee — never approved by the Seante because he is too controversial — head of CMS) who said the NHS proves that competition doesn’t work in health care?

  6. Solange says:

    “I know this is a touchy suejcbt.”Perhaps. For sure it is an important suejcbt, critical for many of us Americans. Those I know without insurance are just starting out; a kid starting his own little business (gimpy, because of a ruptured disc he cannot afford to see a doctor about), a widow lady up the street,whose meagre ss income goes for food and rent rather than medication; the family in the trailer court with no father and mom works two waitress jobs..she waits until every other year they have a free dental clinic so her children’s toothaches can be looked at. This is America, not the Sudan…and that is why this suejcbt is important.