First Faculty Advisor
Institutional; Differences; Between; Hospitals; Economics
This study addresses the effect of hospital ownership on the delivery of medical services to patients with financial difficulties in the southern New England community, using two alternative definitions of community benefits. Also, this study examines the impact of government subsidies on the efficiency and quality of care provided by nonprofit hospitals versus for-profit in Connecticut, and Rhode Island.
Previous research demonstrates that there are no differences when it comes to efficiency and quality when dealing with nonprofit organization or a for-profit company. Using data from hospitals in Connecticut and Rhode Island, these findings on efficiency and quality have been reinforced. In addition, the study finds that nonprofit hospitals may not provide enough community benefits to cover the subsidies provided by the United States government on a national average. These results are sensitive to the definition of community benefits, thus indicating need for a more explicit identification of both the amount of benefits provided, and what is considered a community benefit.