Abstract

http://ssrn.com/abstract=1931335
 
 

References (37)



 
 

Footnotes (12)



 


 



Modeling Internal Decision Making Process: An Explanation of Conflicting Empirical Results on Behavior of Non‐Profit and For‐Profit Hospitals


Kathleen A. Carroll


University of Maryland, Baltimore County - Department of Economics

Jane E. Ruseski


University of Alberta - Department of Economics

October 2011

Contemporary Economic Policy, Vol. 29, Issue 4, pp. 510-523, 2011

Abstract:     
This article develops multiobjective models of hospital decision making that incorporate the internal decision process in both a for‐profit and a non‐profit hospital (NPH). Predicted output and quality for an NPH differ from those for a for‐profit hospital under some conditions but converge under others. Convergence may be the result of a complex internal decision structure with decision control primarily by physicians, similar objectives across different organizational forms, or differing constraints. The mechanisms underlying these outcomes provide explanations for conflicting results in empirical studies of non‐profit and for‐profit hospitals and provide a different rationale for convergence than non‐profit response to competition from for‐profit hospitals. Understanding the source of convergence is important for policies directed toward the tax treatment of NPHs.

Number of Pages in PDF File: 14

JEL Classification: D21, D23, I11, L3, L21

Accepted Paper Series


Date posted: September 21, 2011  

Suggested Citation

Carroll, Kathleen A. and Ruseski, Jane E., Modeling Internal Decision Making Process: An Explanation of Conflicting Empirical Results on Behavior of Non‐Profit and For‐Profit Hospitals (October 2011). Contemporary Economic Policy, Vol. 29, Issue 4, pp. 510-523, 2011. Available at SSRN: http://ssrn.com/abstract=1931335 or http://dx.doi.org/10.1111/j.1465-7287.2010.00245.x

Contact Information

Kathleen A. Carroll (Contact Author)
University of Maryland, Baltimore County - Department of Economics
1000 Hilltop Circle
Baltimore, MD 21250
United States
Jane E. Ruseski
University of Alberta - Department of Economics ( email )
Edmonton, Alberta T6G 2H4
Canada
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References:  37
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