Competition in the Provision of Hospital Services

Market oriented mechanisms can help to reduce costs of provision of hospital services, even in hospitals that are primarily government operated, under a number of conditions. Non-governmental operation of hospitals or non-hospital service providers will often result in better outcomes and, consequently, it is valuable to have such options present. While in general, limiting the number of hospitals that can perform a service will not promote best use of resources, for certain intensive, high-end services with large economies of scale, focusing on the creation of centres of excellence can help to increase both the quantity and quality of services. Introduction of market mechanisms requires that governments pay attention to structural conditions in the market (through merger control) and co-ordination among suppliers (through anti-cartel programs.). This document comprises proceedings in the original languages of a Roundtable on Competition to Promote Efficiency in the Provision of Hospital Services, held by the Working Party n∞2 of the Competition Committee in October 2005.