Changes in Hospital Quality after Conversion in Ownership Status

Posted: 30 Aug 2004

See all articles by Mehdi Farsi

Mehdi Farsi

University of Neuchatel - Institute for Research in Economics (IRENE)

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Abstract

This paper examines the effects of conversions between For-Profit and Not-For-Profit forms on quality of medical care in California hospitals. The sample includes elderly patients treated in California's private hospitals from 1990 to 1998 for Acute Myocardial Infarction and Congestive Heart Failure. The results suggest that converted hospitals have experienced quality changes before conversion and that ignoring these changes may bias the estimates of conversion effects. Both conversions are found to have some adverse consequences: Hospitals that converted to FP form show an increase in AMI mortality rates, while those converted to NFP status indicate an increase in CHF mortality outcomes.

Keywords: Ownership conversions, Hospital quality, Mortality, Medicare beneficiaries

JEL Classification: L31, I18, I11

Suggested Citation

Farsi, Mehdi, Changes in Hospital Quality after Conversion in Ownership Status. Available at SSRN: https://ssrn.com/abstract=584141

Mehdi Farsi (Contact Author)

University of Neuchatel - Institute for Research in Economics (IRENE) ( email )

Pierre-à-Mazel 7
Neuchatel, 2000
Switzerland
+41 32 718 1450 (Phone)

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