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Savings from public procurement centralization in the healthcare system

Author

Listed:
  • Ferraresi, Massimiliano
  • Gucciardi, Gianluca
  • Rizzo, Leonzio

Abstract

We show that the introduction of the procurement centralization within the regional healthcare systems in Italy reduced per capita health expenditure approximatelyt by 2–8%, without affecting the level of health-related public services. Our results also indicate that the effect is persistent after six years, and is not influenced by the coexistence of other organizational models, such as amalgamation and hybrid systems. Finally, we document that the reduction in public expenditure is effective only in areas characterized by poor quality of institutions, indicating that procurement centralization might be an effective tool to reduce corruption-related inefficiencies in the health sector.

Suggested Citation

  • Ferraresi, Massimiliano & Gucciardi, Gianluca & Rizzo, Leonzio, 2021. "Savings from public procurement centralization in the healthcare system," European Journal of Political Economy, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:poleco:v:66:y:2021:i:c:s0176268020301117
    DOI: 10.1016/j.ejpoleco.2020.101963
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    Cited by:

    1. Clark, Robert & Coviello, Decio & de Leverano, Adriano, 2021. "Centralized procurement and delivery times: Evidence from a natural experiment in Italy," ZEW Discussion Papers 21-063, ZEW - Leibniz Centre for European Economic Research.
    2. Visa Pitkänen, 2022. "Competition and efficiency in repeated procurements: Lessons from the Finnish rehabilitation markets," Health Economics, John Wiley & Sons, Ltd., vol. 31(5), pages 820-835, May.

    More about this item

    Keywords

    Purchase centralization; Healthcare public expenditure; Quality of institutions;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H69 - Public Economics - - National Budget, Deficit, and Debt - - - Other
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy

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