Charity care: do not-for-profits influence for-profits?
This study further examines whether not-for-profit hospitals exert pressure on for-profit hospitals to provide charity care and whether for-profit hospitals react differently than not-for-profit hospitals to managed care pressures and hospital competition in providing charity care. A two equation model is estimated using 1996 data from California hospitals. The results indicate that in mixed ownership markets, for-profit hospitals provide significantly less charity care as not-for-profit hospitals in the market provide more. Unexpectedly, study for-profit hospitals were not more influenced by price competition than other hospitals with respect to charity care. Having a unique role in providing charity care may justify continuing tax exemption for not-for-profit hospitals and enhance interest in payment and other policies with regard to conversions to ensure that not-for-profit hospitals continue to be represented in market areas.
Clement
Jan P
JP
Virginia Commonwealth University, USA.
White
Kenneth R
KR
Valdmanis
Vivian
V
D002140:California; D002608:Charities / Q000706:statistics & numerical data / Q000600:supply & distribution*; D004465:Economic Competition / Q000706:statistics & numerical data*; D006302:Health Services Research; D006777:Hospitals, Proprietary / Q000191:economics* / Q000706:statistics & numerical data; D006788:Hospitals, Voluntary / Q000191:economics* / Q000706:statistics & numerical data; D006801:Humans; D008329:Managed Care Programs; D017059:Models, Econometric; D010067:Ownership; D019464:Tax Exemption; D017664:Uncompensated Care / Q000706:statistics & numerical data*