Community benefits: how do for-profit and nonprofit hospitals measure up?
The rise of the for-profit hospital industry has opened a debate about the level of community benefits provided by non-profit hospitals. Do nonprofits provide enough community benefits to justify the community's commitment of resources to them, and the tax-exempt status they receive? If nonprofit hospitals convert to for-profit entities, would community benefits be lost in the transaction? This debate has highlighted the need to define and measure community benefits more clearly. In this Issue Brief, the authors develop a new method of identifying activities that qualify as community benefits, and propose a benchmark for the amount of benefit a nonprofit hospital should provide.
Nicholson
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Leonard Davis Institute of Health Economics, University of Pennsylvania, Philadelphia, USA.
Pauly
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D019985:Benchmarking / Q000191:economics; D003159:Community-Institutional Relations; D003362:Cost-Benefit Analysis / Q000191:economics / Q000379:methods; D004469:Economics, Hospital; D006291:Health Policy; D006764:Hospitals, Community / Q000191:economics*; D006777:Hospitals, Proprietary / Q000191:economics*; D006801:Humans; D018803:Models, Economic; D009939:Organizations, Nonprofit / Q000191:economics*; D012946:Social Welfare / Q000191:economics*; D019464:Tax Exemption / Q000191:economics; D017664:Uncompensated Care / Q000191:economics; D014481:United States