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How Private Hospital Competition Can Improve Canadian Health Care

Type: Research Studies
Date Published: January 1, 2000
Research Topics:
Health, Privatization
In a forthcoming bill (February 2000), the Alberta government has proposed permitting the provision of surgical services by private hospitals. Will this proposal improve health care delivery? A thorough review of the medical economics literature indicates that it will.

The Alberta proposal raises three issues. First, do for-profit hospitals perform better than non-profit ones? Second, do private hospitals (either for-profit or non-profit) perform better than government-run ("public") ones? Third, does intensified competition among hospitals enhance or reduce medical care? Each of these issues has been extensively studied by economists and health policy analysts.
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