Clinical fees in the federal states: cost-effective or distorting competition? (in German)

Authors

• Benček
• D.
• Klodt
• H.

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The report analyses whether differences in the base rates between federal states in Germany can be attributed to systematic cost differences. Results of the statistical analysis suggest that only hospital-specific and structural characteristics of regions account for a portion of the variance in base rates. The current cost structure of hospitals is not reflected by the state-level differentiation of base rates which for the most part seems to be arbitrary. According to economic theory of regulation and incentives, political decision makers should continue to pursue a convergence of base rates towards a national rate.