Competition between hospitals improves quality

Does a hospital’s quality depend on the quality of other hospitals? A spatial econometrics approach to investigating hospital quality competition
Centre Health Economics, University of York, January 2013

• The team used spatial econometric methods to examine the relationship between the quality of hospitals in a sample of English hospitals in 2009-10. 
• They found that a hospital’s quality is positively associated with the quality of its rivals for seven out of the sixteen quality measures and that in no case is there a negative association.