Performance signals in the public sector: the case of health care |
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Authors: | Gravelle Hugh; Smith Peter; Xavier Ana |
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Institution: | National Primary Care Research and Development Centre, Centre for Health Economics, University of York
Centre for Health Economics, University of York, Heslington, York, YO10 5DD; pcs1{at}york.ac.uk
LICOS-Centre for Transition Economics, Katholieke Universiteit, Leuven, Belgium |
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Abstract: | Although there are no traditional markets and money prices inthe public sector, consumers and providers may respond to signalsof organisational performance. We present a simple dynamic modelof the demand and supply for elective surgery in the UK NationalHealth Service in which waiting time acts as the prime indicatorof performance. The model is tested using a panel of quarterlydata for 123 English health authorities over an eight-year period.We find that supply is increasing and demand is decreasing inmeasures of the previous period waiting time. The results implythat health care systems which are rationed by waiting do respondto indicators of waiting times. The paper adds to the smallbut consistent body of research which demonstrates that publicsector systems respond to important aspects of reported performance. |
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