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Investigation of competition under fixed prices
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Lead: Carol Propper
Imperial College London

The research will examine how competition, introduced through 'payment by results' (PbR), is affecting patient care and draw out the implications for the regulation of this market. The study will:

  • analyse the conditions determining the extent of competition pre-reform and how they change over time (including service entry, exit and mergers);

  • analyse the differences in the extent of competition between local areas and services, examining how and why differences evolve;
  • examine the robustness of the system to anti-competitive behaviour and simulate the impact of mergers and other anti-competitive behaviour on the extent of competition;

  • develop tools that allow assessment of the impact of regulatory interventions (e.g. changes in the regulated price, establishment of additional hospital facilities, centralisation of services).

The research is grounded in an understanding of the incentives operating for providers informed by a well tested unified economic framework. It will examine outcomes across the whole of England. It will use geographical information systems (GIS) to analyse and present results in a simple-to-understand way that can inform on-going policy.

Last updated: 13 August 2013
Design: C Rivett-Carnac
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