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Competition in public procurement in the Czech healthcare system and its impact on the final price
[Konkurencia vo verejnom obstarávaní v českom zdravotníctve a jej dopad na finálnu cenu]

Author

Listed:
  • Mária Horehájová
  • Milan Křápek
  • Juraj Nemec

Abstract

Due to the growing volume of public procurements in the Czech Republic every year, the topic of their quality setting and the achieved result is extremely relevant. One of the important qualitative criteria of public procurement (PP) is the degree of competition, which, as domestic and foreign studies show, affects the final, competitive price of PP. In our article, we focused on the relationship between the degree of competition and the achieved savings from PP in the Czech healthcare system in the period from 2014 to 2019. Our analysis confirmed a statistically significant inversely proportional relationship between the number of offers and the final price achieved through PP. A negative finding is the fact that the number of offers and thus the level of competition in the Czech healthcare system has been declining since 2014, which is related to the growing number of PPs with one offer.

Suggested Citation

  • Mária Horehájová & Milan Křápek & Juraj Nemec, 2021. "Competition in public procurement in the Czech healthcare system and its impact on the final price [Konkurencia vo verejnom obstarávaní v českom zdravotníctve a jej dopad na finálnu cenu]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2021(1), pages 23-35.
    • Handle: RePEc:prg:jnlcfu:v:2021:y:2021:i:1:id:553:p:23-35
    DOI: 10.18267/j.cfuc.553
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    References listed on IDEAS

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    1. AndréS GóMez-Lobo & Stefan Szymanski, 2001. "A Law of Large Numbers: Bidding and Compulsory Competitive Tendering for Refuse Collection Contracts," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 18(1), pages 105-113, February.
    2. Brannman, Lance & Klein, J Douglass & Weiss, Leonard W, 1987. "The Price Effects of Increased Competition in Auction Markets," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 24-32, February.
    3. Jan SOudek & Jiri Skuhrovec, 2013. "Public Procurement of Homogeneous Goods: the Czech Republic Case Study," Working Papers IES 2013/05, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised May 2013.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Public procurement; Healthcare; Competition; Savings; Verejné obstarávanie; Zdravotníctvo; Konkurencia; Úspora;
    All these keywords.

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

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