TY  - JOUR
AU  - Horwitz,Jill R.
TI  - Does Corporate Ownership Matter?  Service Provision in the Hospital Industry
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 11376
PY  - 2005
Y2  - May 2005
UR  - http://www.nber.org/papers/w11376
L1  - http://www.nber.org/papers/w11376.pdf
N1  - Author contact info:
Jill Horwitz
University of Michigan Law School
625 South State Street
Ann Arbor, MI  48109-1215
Tel: 734/763-9501
Fax: 734/764-8309
E-Mail: jrhorwit@umich.edu
AB  - Three types of firms  %uF818 nonprofit, for-profit, and government  %uF818 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.
ER  -