Do Pro-Competition Healthcare Reforms Always Bring Health Benefits? Evidence from China

It is already a common practice for many health care systems in the world to opt for mixed markets where different types of health care facilities compete against each other to offer high-quality health care to patients. Nevertheless, little is known about the effects of the interaction between hosp...

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Main Authors: Zixuan Peng, Audrey Laporte, Xiaolin Wei, Jay Pan, Peter C. Coyte
Format: Article
Language:English
Published: Taylor & Francis Group 2025-12-01
Series:Health Systems & Reform
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23288604.2025.2507975
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author Zixuan Peng
Audrey Laporte
Xiaolin Wei
Jay Pan
Peter C. Coyte
author_facet Zixuan Peng
Audrey Laporte
Xiaolin Wei
Jay Pan
Peter C. Coyte
author_sort Zixuan Peng
collection DOAJ
description It is already a common practice for many health care systems in the world to opt for mixed markets where different types of health care facilities compete against each other to offer high-quality health care to patients. Nevertheless, little is known about the effects of the interaction between hospitals of the same or different type on patient health outcomes. This study estimated the impacts of aggregate and specific types of hospital competition by hospital-type on the quality of inpatient care using an analysis dataset comprising 267,183 individuals from China. The Herfindahl–Hirschman index was employed to measure the degree of hospital competition, with length of stay, readmission and mortality being used to measure the quality of inpatient care. The Poisson and binomial logistic models combined with the instrumental variable approach were constructed to estimate the impacts of hospital competition. This study generated three key findings: 1) aggregate hospital competition reduced the quality of inpatient care, as evidenced by a rise in the odds of readmission and length of stay; 2) intra-type hospital competition reduced the quality of inpatient care and in general had larger effects on reducing the quality of inpatient care than inter-type hospital competition; and 3) the only exception was in the way that competition between private nonprofit hospitals contributed to better quality of inpatient care. The overarching suggestion is that instead of treating competition as a panacea for improving health, a flexible plan tailored to specific conditions is needed.
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spelling doaj-art-a1a9c9c9aa094b7dacf6646e41e7bd162025-08-20T03:44:57ZengTaylor & Francis GroupHealth Systems & Reform2328-86042328-86202025-12-0111110.1080/23288604.2025.2507975Do Pro-Competition Healthcare Reforms Always Bring Health Benefits? Evidence from ChinaZixuan Peng0Audrey Laporte1Xiaolin Wei2Jay Pan3Peter C. Coyte4School of Public Health, Southeast University, Nanjing, ChinaInstitute of Health Policy, Management, and Evaluation, Dalla Lana School of Public Health, University of Toronto, Toronto, CanadaInstitute of Health Policy, Management, and Evaluation, Dalla Lana School of Public Health, University of Toronto, Toronto, CanadaWest China School of Public Health and West China Fourth Hospital, Sichuan University, Chengdu, ChinaInstitute of Health Policy, Management, and Evaluation, Dalla Lana School of Public Health, University of Toronto, Toronto, CanadaIt is already a common practice for many health care systems in the world to opt for mixed markets where different types of health care facilities compete against each other to offer high-quality health care to patients. Nevertheless, little is known about the effects of the interaction between hospitals of the same or different type on patient health outcomes. This study estimated the impacts of aggregate and specific types of hospital competition by hospital-type on the quality of inpatient care using an analysis dataset comprising 267,183 individuals from China. The Herfindahl–Hirschman index was employed to measure the degree of hospital competition, with length of stay, readmission and mortality being used to measure the quality of inpatient care. The Poisson and binomial logistic models combined with the instrumental variable approach were constructed to estimate the impacts of hospital competition. This study generated three key findings: 1) aggregate hospital competition reduced the quality of inpatient care, as evidenced by a rise in the odds of readmission and length of stay; 2) intra-type hospital competition reduced the quality of inpatient care and in general had larger effects on reducing the quality of inpatient care than inter-type hospital competition; and 3) the only exception was in the way that competition between private nonprofit hospitals contributed to better quality of inpatient care. The overarching suggestion is that instead of treating competition as a panacea for improving health, a flexible plan tailored to specific conditions is needed.https://www.tandfonline.com/doi/10.1080/23288604.2025.2507975Competition reformshealthcare qualityhospital competition
spellingShingle Zixuan Peng
Audrey Laporte
Xiaolin Wei
Jay Pan
Peter C. Coyte
Do Pro-Competition Healthcare Reforms Always Bring Health Benefits? Evidence from China
Health Systems & Reform
Competition reforms
healthcare quality
hospital competition
title Do Pro-Competition Healthcare Reforms Always Bring Health Benefits? Evidence from China
title_full Do Pro-Competition Healthcare Reforms Always Bring Health Benefits? Evidence from China
title_fullStr Do Pro-Competition Healthcare Reforms Always Bring Health Benefits? Evidence from China
title_full_unstemmed Do Pro-Competition Healthcare Reforms Always Bring Health Benefits? Evidence from China
title_short Do Pro-Competition Healthcare Reforms Always Bring Health Benefits? Evidence from China
title_sort do pro competition healthcare reforms always bring health benefits evidence from china
topic Competition reforms
healthcare quality
hospital competition
url https://www.tandfonline.com/doi/10.1080/23288604.2025.2507975
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AT audreylaporte doprocompetitionhealthcarereformsalwaysbringhealthbenefitsevidencefromchina
AT xiaolinwei doprocompetitionhealthcarereformsalwaysbringhealthbenefitsevidencefromchina
AT jaypan doprocompetitionhealthcarereformsalwaysbringhealthbenefitsevidencefromchina
AT peterccoyte doprocompetitionhealthcarereformsalwaysbringhealthbenefitsevidencefromchina