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Do higher hospital reimbursement prices improve quality of care?

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  • Salm, Martin
  • Wübker, Ansgar

Abstract

Does higher medical spending improve quality of care? We estimate the effect of changes in regulated reimbursement prices for hospitals on multiple dimensions of hospital quality, including mortality outcomes, surgical complications, process quality, and patient satisfaction. We exploit an exogenous variation in reimbursement prices between the years 2006 and 2010 based on a reform of hospital financing in Germany. We find that changes in reimbursement prices do not affect quality of care. This effect is precisely estimated, and we can rule out effect sizes that are large relative to the overall variation in quality indicators across hospitals.

Suggested Citation

  • Salm, Martin & Wübker, Ansgar, 2018. "Do higher hospital reimbursement prices improve quality of care?," Ruhr Economic Papers 779, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:779
    DOI: 10.4419/86788907
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    References listed on IDEAS

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    Cited by:

    1. Wozny, Florian, 2020. "Hospital Resources: Persistent Reallocation under Price Changes," IZA Discussion Papers 13256, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    health care expenditures; hospital care; quality of care;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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