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The effect of waiting times on demand and supply for elective surgery: Evidence from Italy

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  • Andrea Riganti
  • Luigi Siciliani
  • Carlo V. Fiorio

Abstract

Waiting times are a major policy concern in publicly funded health systems across OECD countries. Economists have argued that, in the presence of excess demand, waiting times act as nonmonetary prices to bring demand for and supply of health care in equilibrium. Using administrative data disaggregated by region and surgical procedure over 2010–2014 in Italy, we estimate demand and supply elasticities with respect to waiting times. We employ linear regression models with first differences and instrumental variables to deal with endogeneity of waiting times. We find that demand is inelastic to waiting times while supply is more elastic. Estimates of demand elasticity are between −0.15 to −0.24. Our results have implications on the effectiveness of policies aimed at increasing supply and their ability to reduce waiting times.

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  • Andrea Riganti & Luigi Siciliani & Carlo V. Fiorio, 2017. "The effect of waiting times on demand and supply for elective surgery: Evidence from Italy," Health Economics, John Wiley & Sons, Ltd., vol. 26(S2), pages 92-105, September.
    • Handle: RePEc:wly:hlthec:v:26:y:2017:i:s2:p:92-105
    DOI: 10.1002/hec.3545
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    3. Helen Hayes & Rachel Meacock & Jonathan Stokes & Matt Sutton, 2024. "How do family doctors respond to reduced waiting times for cancer diagnosis in secondary care?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 25(5), pages 813-828, July.
    4. S. Balia & R. Brau & D. Moro, 2018. "Hospital choice with high long-distance mobility," Working Paper CRENoS 201810, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    5. Agovino, Massimiliano & Musella, Gaetano & Scaletti, Alessandro, 2022. "Equilibrium and efficiency in the first aid services market: The case of the emergency department of Sorrento," Socio-Economic Planning Sciences, Elsevier, vol. 82(PB).
    6. Christine A. Yee & Kyle Barr & Taeko Minegishi & Austin Frakt & Steven D. Pizer, 2022. "Provider supply and access to primary care," Health Economics, John Wiley & Sons, Ltd., vol. 31(7), pages 1296-1316, July.
    7. M. Lippi Bruni & C. Ugolini & R. Verzulli, 2018. "Disentangling the effect of waiting times on hospital choice: Evidence from a panel data analysis," Working Papers wp1118, Dipartimento Scienze Economiche, Universita' di Bologna.
    8. Callum Brindley & James Lomas & Luigi Siciliani, 2023. "The effect of hospital spending on waiting times," Health Economics, John Wiley & Sons, Ltd., vol. 32(11), pages 2427-2445, November.
    9. Luca Armanaschi & Elisabetta Barzan & Magda Cavallucci & Carlo Federici & Marco Sartirana & Florian Zerzer, 2022. "I dati amministrativi per la governance dei tempi di attesa delle prestazioni ambulatoriali: l?esperienza dell?Azienda Sanitaria dell?Alto Adige," MECOSAN, FrancoAngeli Editore, vol. 2022(123), pages 53-75.
    10. Ou Yang & Jongsay Yong & Yuting Zhang, 2024. "Effects of private health insurance on waiting time in public hospitals," Health Economics, John Wiley & Sons, Ltd., vol. 33(6), pages 1192-1210, June.
    11. Daniel Adrian Lungu & Elisa Foresi & Paolo Belardi & Sabina Nuti & Andrea Giannini & Tommaso Simoncini, 2021. "The Impact of New Surgical Techniques on Geographical Unwarranted Variation: The Case of Benign Hysterectomy," IJERPH, MDPI, vol. 18(13), pages 1-14, June.
    12. Paolo Berta & Gianmaria Martini & Daniele Spinelli & Giorgio Vittadini, 2022. "The beaten paths effect on patient inter‐regional mobility: An application to the Italian NHS," Papers in Regional Science, Wiley Blackwell, vol. 101(4), pages 945-977, August.
    13. Levaggi, Laura & Levaggi, Rosella, 2020. "Is there scope for mixed markets in the provision of hospital care?," Social Science & Medicine, Elsevier, vol. 247(C).
    14. Marè, M.; & Porcelli, F.; & Vidoli, F.;, 2024. "Does private supply drive personal health choices? A spatial approach of health tax detractions at municipal level," Health, Econometrics and Data Group (HEDG) Working Papers 24/03, HEDG, c/o Department of Economics, University of York.
    15. André Madeira & Victor Moutinho & José Alberto Fuinhas, 2021. "Does waiting times decrease or increase operational costs in short and long-term? Evidence from Portuguese public hospitals," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(8), pages 1195-1216, November.
    16. Lippi Bruni, Matteo & Ugolini, Cristina & Verzulli, Rossella, 2021. "Should I wait or should I go? Travelling versus waiting for better healthcare," Regional Science and Urban Economics, Elsevier, vol. 89(C).
    17. Balia, Silvia & Brau, Rinaldo & Moro, Daniela, 2020. "Choice of hospital and long-distances: Evidence from Italy," Regional Science and Urban Economics, Elsevier, vol. 81(C).
    18. Strobel, Stephenson, 2024. "Who responds to longer wait times? The effects of predicted emergency wait times on the health and volume of patients who present for care," Journal of Health Economics, Elsevier, vol. 96(C).

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