In this paper we look at the Italian National Health System as a case study
, in order to investigate whether competition exerts positive effects on th
e efficiency of hospitals. Using the DEA technique we measure the efficienc
y of Italian hospital production; secondly, we take a regression analysis a
pproach to analyse its determinants. A general conclusion stemming out of t
he analysis is that competition is not a value per se and that its effects
on hospitals' performance are affected by the rules governing the health sy
stem.