The supply of charity services by nonprofit hospitals: motives and market structure.
This article studies provision of charity care by private, nonprofit hospitals. We demonstrate that in the absence of large positive income effects on charity care supply, convex preferences for the nonprofit hospital imply crowding out by other private or government hospitals. Extending our model to include impure altruism (rivalry) provides a possible explanation for the previously reported empirical result that both crowding out and income effects on indigent care supply are often weak or insignificant. Empirical analysis of data for hospitals in Maryland provides evidence of rivalry on the supply of charity care.
Frank
R G
RG
Johns Hopkins University.
Salkever
D S
DS
D000533:Altruism; D002608:Charities / Q000191:economics* / Q000706:statistics & numerical data; D003365:Costs and Cost Analysis / Q000706:statistics & numerical data; D006301:Health Services Needs and Demand / Q000191:economics; D006788:Hospitals, Voluntary / Q000191:economics* / Q000458:organization & administration / Q000706:statistics & numerical data; D006801:Humans; D007182:Income / Q000706:statistics & numerical data; D008396:Maryland; D008489:Medical Indigency / Q000191:economics* / Q000706:statistics & numerical data; D015233:Models, Statistical; D009042:Motivation; D010343:Patient Admission / Q000191:economics / Q000706:statistics & numerical data; D012044:Regression Analysis