Hospital Ownership and Cost and Quality of Care: is There a Dime's Worth of Difference?

37 Pages Posted: 7 Jan 1999 Last revised: 28 Jan 2010

See all articles by Frank A. Sloan

Frank A. Sloan

Duke University - Center for Health Policy, Law and Management; Duke University, Fuqua School of Business-Economics Group; Duke University - Department of Economics; National Bureau of Economic Research (NBER)

Gabriel Picone

Department of Economics

Donald H. Taylor

Duke University - Center for Health Policy, Law and Management

Shin-Yi Chou

Lehigh University - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: August 1998

Abstract

This paper compares cost and quality of care for Medicare patients hospitalized in for-profit hospitals contrasted with those in nonprofit and government hospitals following admission for hip fracture, stroke, coronary heart disease, or congestive heart failure. Cost of care in for-profit hospitals was similar to that of nonprofits, but patients admitted to government hospitals incurred less Medicare payments on average. There were only small differences in survival between for-profit, nonprofit, and government hospitals. Other measures of quality, including living in the community and activity of daily living limitations after index admission, show trivial differences by hospital ownership type. Between private sector hospital types (for-profit and nonprofit) there is indeed not a dime's worth of difference between the two in terms of cost to Medicare and patient outcome.

Suggested Citation

Sloan, Frank A. and Picone, Gabriel and Taylor, Donald H. and Chou, Shin-Yi, Hospital Ownership and Cost and Quality of Care: is There a Dime's Worth of Difference? (August 1998). NBER Working Paper No. w6706. Available at SSRN: https://ssrn.com/abstract=120869

Frank A. Sloan (Contact Author)

Duke University - Center for Health Policy, Law and Management ( email )

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Duke University, Fuqua School of Business-Economics Group ( email )

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Duke University - Department of Economics ( email )

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Donald H. Taylor

Duke University - Center for Health Policy, Law and Management ( email )

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United States
(919) 684-2361 (Phone)
(919) 684-6426 (Fax)

Shin-Yi Chou

Lehigh University - Department of Economics ( email )

620 Taylor Street
Bethlehem, PA 18015
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
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