Does Corporate Ownership Matter? Service Provision in the Hospital Industry

62 Pages Posted: 4 Jul 2005 Last revised: 7 Apr 2023

See all articles by Jill R. Horwitz

Jill R. Horwitz

UCLA School of Law; National Bureau of Economic Research (NBER)

Date Written: May 2005

Abstract

Three types of firms — nonprofit, for-profit, and government — 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.

Suggested Citation

Horwitz, Jill R., Does Corporate Ownership Matter? Service Provision in the Hospital Industry (May 2005). NBER Working Paper No. w11376, Available at SSRN: https://ssrn.com/abstract=731031

Jill R. Horwitz (Contact Author)

UCLA School of Law ( email )

385 Charles E. Young Dr. East
Room 1242
Los Angeles, CA 90095-1476
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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