Does price competition drive cooperation in health care? A stochastic actor oriented model analysis

Daan Westra, Federica Angeli, Martin Carree, Dirk Ruwaard

Research output: Contribution to journalMeeting AbstractOther research output

Abstract

Pro-competitive reforms have been enacted throughout Western healthcare systems despite mixed evidence of their effect. Although healthcare organizations competing under non-price competition have been shown to cooperate using patient transfers, little is known about cooperative strategies of healthcare organizations in price-competitive healthcare markets. This paper investigates a novel and understudied form of inter-hospital cooperation described as potentially hazardous to well-functioning healthcare markets, namely the act of sharing medical specialists between hospitals. In particular, it investigates the influence of price-competition on cooperative hospital strategies. We use a stochastic actor-oriented model to analyze the cooperative dynamics amongst 94 general and academic hospitals in the Netherlands between 2010 and 2015. Our results show that, in a price-competitive healthcare sector, hospitals predominantly cooperate with their direct competitors. However, the ratio of price-competitive to ...
Original languageEnglish
Pages (from-to)12839
Number of pages1
JournalAcademy of Management Proceedings
Volume2016
Issue number1
DOIs
Publication statusPublished - Jan 2016

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Healthcare
Price competition
Competitive prices
Health care organization
Functioning
Cooperative strategy
Competitors
The Netherlands
Health care system

Keywords

  • Hospital cooperation
  • Managed competition
  • Social Network Analysis

Cite this

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abstract = "Pro-competitive reforms have been enacted throughout Western healthcare systems despite mixed evidence of their effect. Although healthcare organizations competing under non-price competition have been shown to cooperate using patient transfers, little is known about cooperative strategies of healthcare organizations in price-competitive healthcare markets. This paper investigates a novel and understudied form of inter-hospital cooperation described as potentially hazardous to well-functioning healthcare markets, namely the act of sharing medical specialists between hospitals. In particular, it investigates the influence of price-competition on cooperative hospital strategies. We use a stochastic actor-oriented model to analyze the cooperative dynamics amongst 94 general and academic hospitals in the Netherlands between 2010 and 2015. Our results show that, in a price-competitive healthcare sector, hospitals predominantly cooperate with their direct competitors. However, the ratio of price-competitive to ...",
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Does price competition drive cooperation in health care? A stochastic actor oriented model analysis. / Westra, Daan; Angeli, Federica; Carree, Martin; Ruwaard, Dirk.

In: Academy of Management Proceedings, Vol. 2016, No. 1, 01.2016, p. 12839.

Research output: Contribution to journalMeeting AbstractOther research output

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T1 - Does price competition drive cooperation in health care?

T2 - A stochastic actor oriented model analysis

AU - Westra, Daan

AU - Angeli, Federica

AU - Carree, Martin

AU - Ruwaard, Dirk

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AB - Pro-competitive reforms have been enacted throughout Western healthcare systems despite mixed evidence of their effect. Although healthcare organizations competing under non-price competition have been shown to cooperate using patient transfers, little is known about cooperative strategies of healthcare organizations in price-competitive healthcare markets. This paper investigates a novel and understudied form of inter-hospital cooperation described as potentially hazardous to well-functioning healthcare markets, namely the act of sharing medical specialists between hospitals. In particular, it investigates the influence of price-competition on cooperative hospital strategies. We use a stochastic actor-oriented model to analyze the cooperative dynamics amongst 94 general and academic hospitals in the Netherlands between 2010 and 2015. Our results show that, in a price-competitive healthcare sector, hospitals predominantly cooperate with their direct competitors. However, the ratio of price-competitive to ...

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KW - Social Network Analysis

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