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

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.