Centralized Procurement and Delivery Times: Evidence from a Natural Experiment in Italy

Mer, 23/03/2022 - 12:00 / 13:00

401, Viale Romania

Speaker: Adriano De Leverano , ZEW – Leibniz Centre for European Economic Research, Mannheim

Abstract

We examine the impact of centralization on medical-device procurement by hospitals. We leverage a comprehensive dataset on device orders from Italy and take advantage of a legislative change that mandated centralized purchases for a subset of devices. Consistent with previous studies we find that centralization reduces prices for centralized devices relative to non-centralized purchases. Uniquely, our dataset contains information on order and delivery dates, allowing us to also study the impact on delivery times. We find that statutory centralization resulted in a small increase in delivery times. Using data on quantities, the identity of suppliers and their balance sheets, we examine mechanisms potentially underlying our findings.