Next Article in Journal
Global to USA County Scale Analysis of Weather, Urban Density, Mobility, Homestay, and Mask Use on COVID-19
Next Article in Special Issue
Performance Pay in Hospitals: An Experiment on Bonus–Malus Incentives
Previous Article in Journal
A Novel Method for Gait Analysis on Center of Pressure Excursion Based on a Pressure-Sensitive Mat
Previous Article in Special Issue
Health Systems, Aging, and Inequity: An Example from Chile
Open AccessArticle

Competition between Public and Private Maternity Care Providers in France: Evidence on Market Segmentation

by 1,*,† and 2,3,†
1
PSL Research University, LEDa (CGEMP) UMR CNRS [8007], Université Paris-Dauphine, UMR IRD [260], 75016 Paris, France
2
Panthéon-Sorbonne, University of Paris 1, 75231 Paris, France
3
Hospinnomics, Assistance Publique-Hôpitaux de Paris and Paris School of Economics, 75014 Paris, France
*
Author to whom correspondence should be addressed.
These authors contributed equally to this work.
Int. J. Environ. Res. Public Health 2020, 17(21), 7846; https://doi.org/10.3390/ijerph17217846
Received: 2 October 2020 / Revised: 11 October 2020 / Accepted: 13 October 2020 / Published: 26 October 2020
(This article belongs to the Special Issue Incentive and Market Perspectives in Health Care)
The purpose of this paper is to investigate the potential for segmentation in hospital markets, using the French case where private for-profit providers play an important role having nearly 25% of market shares, and where prices are regulated, leading to quality competition. Using a stylized economic model of hospital competition, we investigate the potential for displacement between vertically differentiated public and private providers, focusing on maternity units where user choice is central. Building over the model, we test the following three hypotheses. First, the number of public maternity units is likely to be much larger in less populated departments than in more populated ones. Second, as the number of public maternity units decreases, the profitability constraint should allow more private players into the market. Third, private units are closer substitutes to other private units than to public units. Building an exhaustive and nationwide data set on the activity of maternity services linked to detailed data at a hospital level, we use an event study framework, which exploits two sources of variation: (1) The variation over time in the number of maternity units and (2) the variation in users’ choices. We find support for our hypotheses, indicating that segmentation is at work in these markets with asymmetrical effects between public and private sectors that need to be accounted for when deciding on public market entry or exit. View Full-Text
Keywords: maternity units; quality differentiation; substitution; market segmentation; public-private mix maternity units; quality differentiation; substitution; market segmentation; public-private mix
Show Figures

Figure 1

MDPI and ACS Style

Herrera-Araujo, D.; Rochaix, L. Competition between Public and Private Maternity Care Providers in France: Evidence on Market Segmentation. Int. J. Environ. Res. Public Health 2020, 17, 7846.

Show more citation formats Show less citations formats
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Search more from Scilit
 
Search
Back to TopTop