Working Paper: NBER ID: w11376
Authors: Jill R. Horwitz
Abstract: Three types of firms — nonprofit, for-profit, and government — own U.S. hospitals, yet we do not know whether ownership results in the specialization of medical service provision. This study of over 30 medical services in urban, general hospitals (1988-2000) shows that ownership types specialize in medical services according to the profitability of those services. The paper examines three theories to explain the differences: 1) objectives, 2) capital prices, and 3) market characteristics. The findings are best explained by differences in the objectives adopted by hospital types rather than differences in capital constraints faced by them. Preliminary evidence suggests that hospital behavior depends on the ownership form of neighboring hospitals.
Keywords: No keywords provided
JEL Codes: I1; L3; L2
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| For-profit hospitals (L39) | Offer profitable services (open heart surgery) (I11) |
| Government hospitals (I18) | Offer psychiatric emergency services (I11) |
| For-profit hospitals (L39) | Responsiveness to financial incentives in home health care services (I11) |