Competition and Markets Authority 31 January 2019
- Previous hospital mergers have reduced the number of distinct organisations offering publicly funded and provided care in the NHS, reducing choice and between-hospital competition in some areas.
- This paper tests the impact of variation in concentration on a new quality indicator: the prevalence of patient harm from falls, pressure ulcers, blood clots and urinary tract infections. Analysis finds a significant inverse relationship between concentration and quality. Specifically, estimates imply that a hypothetical merger to monopoly would, on average, be associated with a significant increase in harm rates.
- In addition to the direct effect on patients’ well-being, even small gains to health from competition would likely give rise to large savings for the taxpayer because of reduced treatment costs.