Impact of lower prices for private hospital services

Impact of lower prices for private hospital services

April 13, 2015

Copenhagen Economics has looked into the functioning of the market for services performed by private hospitals under the ‘udvidede fri sygehusvalg’.


We find that a set of ‘referencetakster’ calculated by Indenrigs- Sundhedsministeriet setting the benchmark for prices that private hospitals receive for services under the ‘udvidede fri sygehusvalg’ are systematically calculated too low. This is due to a, seemingly innocent, change in calculation method by Indenrigs- Sundhedsministeriet.


Furthermore, we find that lower prices for private hospital services under ‘udvidede fri sygehusvalg’, may push some private hospitals out of the market leading to higher pressure on less efficient public hospitals. This serves to push up costs in health care.


Finally, we find a potential for more cooperation between public and private hospitals that could increase overall efficiency thereby reducing costs of health care.


Read the report here


For further information, please contact partner Christian Jervelund