NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Hospital Ownership and Public Medical Spending

Mark Duggan

NBER Working Paper No. 7789
Issued in July 2000
NBER Program(s):   HC

The hospital market is served by firms that are private for-profit, private not-for-profit, and government-owned and operated. I use a plausibly exogenous change in hospital financing that was intended to improve medical care for the poor to test three theories of organizational behavior. My results reveal that the critical difference between the three types of hospitals owes to the soft budget constraint of government-owned institutions. The decision-makers in private not-for-profit hospitals are just as responsive to financial incentives and are no more altruistic than their counterparts in profit-maximizing facilities. My final set of results suggests that the significant increase in public medical spending examined in this paper did not improve health outcomes for the indigent.

download in pdf format
   (256 K)

email paper

A non-technical summary of this paper is available in the October 2000 NBER digest.  You can sign up to receive the NBER Digest by email.

The NBER Bulletin on Aging and Health provides summaries of publications like this.  You can sign up to receive the NBER Bulletin on Aging and Health by email.

This paper is available as PDF (256 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w7789

Published: Duggan, Mark G. "Hospital Ownership And Public Medical Spending," Quarterly Journal of Economics, 2000, v115(4,Nov), 1343-1373.

Users who downloaded this paper also downloaded these:
Duggan w7966 Hospital Market Structure and the Behavior of Not-for-Profit Hospitals: Evidence from Responses to California's Disproportionate Share Program
Kessler and McClellan w7266 Is Hospital Competition Socially Wasteful?
Kessler and McClellan w8537 The Effects of Hospital Ownership on Medical Productivity
Sloan, Picone, Taylor, Jr., and Chou w6706 Hospital Ownership and Cost and Quality of Care: Is There a Dime's Worth of Difference?
Duggan w9091 Does Contracting Out Increase the Efficiency of Government Programs? Evidence from Medicaid HMOs
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us