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Centralized procurement and delivery times: Evidence from a natural experiment in Italy

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  • Clark, Robert
  • Coviello, Decio
  • de Leverano, Adriano

Abstract

We study how delivery times and prices for hospital medical devices respond to the introduction of centralized procurement. Our identification strategy leverages a legislative change in Italy that mandated centralized purchases for a sub-set of devices. The statutory centralization generated a reduction in prices and an increase in delivery times for centralized purchases relative to non-centralized purchases. We use data on quantities and on suppliers to discuss the mechanisms potentially underlying our findings.

Suggested Citation

  • 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.
    • Handle: RePEc:zbw:zewdip:21063
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    References listed on IDEAS

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    8. Francesco Decarolis & Leonardo M Giuffrida & Elisabetta Iossa & Vincenzo Mollisi & Giancarlo Spagnolo, 2020. "Bureaucratic Competence and Procurement Outcomes [“Politics and Economics in Weak and Strong States]," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 36(3), pages 537-597.
    9. 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).
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    Cited by:

    1. de Leverano, Adriano & Baulia, Susmita, 2023. "A new indicator to implement effective spending review policies in the public procurement for standardized goods," ZEW Discussion Papers 23-063, ZEW - Leibniz Centre for European Economic Research.
    2. Clarissa Lotti & Arieda Muço & Giancarlo Spagnolo & Tommaso Valletti, 2024. "Indirect Savings from Public Procurement Centralization," American Economic Journal: Economic Policy, American Economic Association, vol. 16(3), pages 347-366, August.
    3. Chiappinelli, Olga & Giuffrida, Leonardo M. & Spagnolo, Giancarlo, 2023. "Public procurement as an innovation policy: Where do we stand?," ZEW Discussion Papers 23-002, ZEW - Leibniz Centre for European Economic Research.
    4. Clarissa Lotti & Giancarlo Spagnolo, 2022. "Indirect Savings from Public Procurement Centralization," CEIS Research Paper 532, Tor Vergata University, CEIS, revised 01 Feb 2022.

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    More about this item

    Keywords

    Public Procurement; Centralization; Medical Devices; Delivery Times; Bulk Purchasing;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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