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Which type of hospital ownership has the best efficiency? Evidence and implications from Germany.

Tiemann O, Schreyögg J, Busse R
Eurohealth 17(2-3): 31-33




Summary: The German hospital market has been subject to a variety of health care reforms over the past two decades. In particular, the introduction of diagnosis-related groups (DRGs) has aimed to increase the performance of hospitals. This article reports on recent studies comparing the performance of public, private non-profit and private for-profit hospitals in Germany. The results of our analysis show that public hospitals have higher efficiency, while private hospitals provide superior quality of care compared to their public counterparts. Finally, we draw conclusions and policy implications taking other hospital and market characteristics into account.

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