Differences between Non-Profits and For-Profits in the Hospice Industry: Patient Selection and Quality
Posted: 5 Jul 2008
This research compares the behavior of non-profit organizations and private for-profit firms under strong incentives from a government program. Specifically, I study the hospice industry, where there are financial incentives created by the Medicare benefit. After controlling for a number of relevant factors, the results suggest that for-profit hospices differentially take advantage of these incentives. I find evidence of patient selection via referral networks, differences in staff mix, and lower levels of quality in for-profit hospices.
Keywords: ownership, non-profit, Medicare, hospice
JEL Classification: I11
Suggested Citation: Suggested Citation