Journal article

Quality target negotiation in health care: evidence from the English NHS

Eleonora Fichera, Hugh Gravelle, Mario Pezzino, Matt Sutton

EUROPEAN JOURNAL OF HEALTH ECONOMICS | SPRINGER | Published : 2016

Abstract

We examine how public sector third-party purchasers and hospitals negotiate quality targets when a fixed proportion of hospital revenue is required to be linked to quality. We develop a bargaining model linking the number of quality targets to purchaser and hospital characteristics. Using data extracted from 153 contracts for acute hospital services in England in 2010/2011, we find that the number of quality targets is associated with the purchaser's population health and its budget, the hospital type, whether the purchaser delegated negotiation to an agency, and the quality targets imposed by the supervising regional health authority.

Grants

Awarded by Medical Research Council


Funding Acknowledgements

The research was funded by a grant from the Department of Health Policy Research Programme. The views expressed are those of the authors and not necessarily those of the funders. The authors are grateful for helpful comments from the Editor and referee and from participants in the Royal Economic Society (RES) conference in Cambridge, 2012.