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Explaining differences in hospital performance: Does the answer lie in the labour market?

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  • Simon Burgess
  • Denise Gossage
  • Carol Propper

Abstract

This paper examines the relationship between performance of English public sector hospitals (NHS trusts) and the quality of their nursing staff. Performance ratings of NHS trusts published in 2001 and 2002 indicate a clear regional divide. This divide is not explained by lower medical need. The gap between wages in the private and public sector (the private sector premium) has a regional divide similar to that of the performance ratings. Utilising cross sectional variation in the private sector premium, we find that performance against several of the individual targets that are aggregated into the NHS performance ratings is negatively associated with the private sector premium.

Suggested Citation

  • Simon Burgess & Denise Gossage & Carol Propper, 2003. "Explaining differences in hospital performance: Does the answer lie in the labour market?," The Centre for Market and Public Organisation 03/091, The Centre for Market and Public Organisation, University of Bristol, UK.
    • Handle: RePEc:bri:cmpowp:03/091
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    File URL: https://www.bris.ac.uk/Depts/CMPO/workingpapers/wp91.pdf
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    References listed on IDEAS

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    1. Carol Propper & Deborah Wilson, 2003. "The Use and Usefulness of Performance Measures in the Public Sector," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 19(2), pages 250-267, Summer.
    2. Julie Berry Cullen & Randall Reback, 2006. "Tinkering Toward Accolades: School Gaming Under a Performance Accountability System," NBER Working Papers 12286, National Bureau of Economic Research, Inc.
    3. repec:rus:hseeco:122160 is not listed on IDEAS
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    1. repec:cte:werepe:we060201 is not listed on IDEAS
    2. Matilde P. Machado & Ricardo Mora & Antonio Romero-Medina, 2012. "Can We Infer Hospital Quality From Medical Graduates’ Residency Choices?," Journal of the European Economic Association, European Economic Association, vol. 10(6), pages 1400-1424, December.
    3. Ross Mackay & Jonathan Williams, 2005. "Thinking about need: Public spending on the regions," Regional Studies, Taylor & Francis Journals, vol. 39(6), pages 815-828.
    4. Ian Gordon & Vassilis Monastiriotis, 2007. "Education, Location, Education: A Spatial Analysis of English Secondary School Public Examination Results," Urban Studies, Urban Studies Journal Limited, vol. 44(7), pages 1203-1228, June.
    5. Stephen J Bailey, 2005. "Equalisation of Municipal Input Costs in England: Matters of Principle and Practice," Environment and Planning C, , vol. 23(1), pages 85-100, February.
    6. David G. Blanchflower & Andrew J. Oswald, 2005. "Regional Wages and the Need for a Better Area Cost Adjustment," Public Money & Management, Taylor & Francis Journals, vol. 25(2), pages 86-88, April.
    7. Gwyn Bevan & Richard Hamblin, 2009. "Hitting and missing targets by ambulance services for emergency calls: effects of different systems of performance measurement within the UK," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 172(1), pages 161-190, January.

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    More about this item

    Keywords

    performance ratings; private sector wage; premia; public sector performance;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • H4 - Public Economics - - Publicly Provided Goods

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