Are Doctors Better Health Ministers?

Adam Pilny, Felix Roesel
2020 American Journal of Health Economics  
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more » ... bedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract Appointing or electing professionals to be public officials is a double-edged sword. Experts can use their rich knowledge to implement reforms, but they can also favor their own profession. In this study, we compare physician-trained state health ministers to ministers of other professions in Germany during 1955-2017. German state health ministers have great power to determine hospital capacities and infrastructure. Our results show that physician-trained health ministers increase hospital capacities, capital, and funding by the statutory health insurance (SHI). This prompts hospitals to hire more physicians, but with little impact on hospital outputs. As a result, total factor productivity (TFP) growth in hospital care slows down substantially under physician-ministers. At the same time, job satisfaction of hospital doctors tends to increase. We conclude that, in particular, the medical profession benefits from medical doctors in office. JEL-Code: D72, I11, I18, O47, P16 for helpful comments and suggestions. Furthermore, we would like to thank the participants
doi:10.1086/710331 fatcat:sdinzto4kbgafgvflple7knbvm