Do managerial incentives matter? The effect of hip fracture surgery delays and outcomes (with M. Lippi Bruni).
In most OECD countries, pre-surgery waiting time has become a process indicator of the quality of care for hip fracture patients, and international clinical guidelines recommend hip fracture surgery to be provided within two days of hospitalisation. To help achieve this target, in year 2011 the Italy’s Emilia-Romagna region implemented a policy under which hospital performance was monitored and evaluated, allowing the chief executives of Local Health Authorities and hospital Trusts to receive additional rewards if they managed to achieve increases in the proportion of hip fracture patients operated on within two days after hospital admission. In this paper, we empirically test the effect of the policy on shortening waiting times for hip fracture surgery by using a difference-in-differences analysis on patient-level data between 2007 and 2016. We find that the introduction of managerial incentives had the effect to reduce hip fracture surgery delays. The effect is statistically significant from year 2012 onwards, and cumulates over time. Moreover, we find that the policy did not just affect the cases near the incentive threshold of two days, but also induced a shift in the overall distribution of waiting times. Finally, our findings suggest no significant effects in terms of post-operative length of stay. The results may provide useful insights to develop targeted policy interventions in similarly regulated health care settings.