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Related Experiment Videos

Hospital ownership and performance.

E R Becker, F A Sloan

    Economic Inquiry
    |December 11, 1984
    PubMed
    Summary

    Hospital ownership forms, including for-profit, nonprofit, and public, show similar costs and profitability. This challenges standard property rights theories in healthcare economics.

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    Area of Science:

    • Healthcare Economics
    • Organizational Studies

    Background:

    • Hospital ownership structures significantly influence operational strategies and financial outcomes.
    • Understanding the impact of different ownership models is crucial for healthcare policy and management.

    Purpose of the Study:

    • To compare the performance of for-profit, private nonprofit, and public hospitals.
    • To analyze the effect of hospital chain affiliation on performance across ownership types.

    Main Methods:

    • Utilized data from a 1979 national survey of U.S. hospitals.
    • Compared hospital costs and profitability across distinct ownership categories.

    Main Results:

    • Hospital costs were found to be remarkably similar across for-profit, private nonprofit, and public ownership forms.
    • Profitability also showed no significant divergence based on hospital ownership type.
    • Empirical evidence supporting standard property rights theory was limited.

    Conclusions:

    • Ownership form alone may not be a primary determinant of hospital cost or profitability.
    • Further research is needed to explore other factors influencing hospital performance beyond ownership structure.

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