IDEAS home Printed from https://ideas.repec.org/a/bpj/nonpfo/v14y2023i1p77-97n5.html
   My bibliography  Save this article

A Tax Credit Proposal for Profit Moderation and Social Mission Maximization in Long-Term Residential Care Businesses

Author

Listed:
  • Kerlin Janelle A.
  • Ye Meng

    (Department of Public Management and Policy, Georgia State University, 14 Marietta St NW, Suite 356, 30303, Atlanta, GA, USA)

  • Chen Wendy

    (Department of Political Science, Texas Tech University, 79409, Lubbock, TX, USA)

Abstract

This policy brief proposes a tax credit with related qualifying conditions that address the serious deficiencies related to abuse and neglect found in the current for-profit long-term care space. It also seeks to address the lack of government accountability for huge outlays of taxpayer dollars in the form of Medicare and Medicaid payments to these facilities, much of which results in maximizing profits for wealthy investors at the expense of vulnerable individuals with limited voice. Our proposed policy arrangement alters the organizational DNA of the for-profit organization, including the moderation of profit, to circumvent the existing financial incentives that are driving the mistreatment and malpractice so evident in the system. It aims to achieve this through four policy components including social financing, a sliding dividend cap, employee-ownership, and limits on complex corporate structures which are tied to a tax credit. This multi-faceted policy idea is intended to start the discussion around a possible path forward.

Suggested Citation

  • Kerlin Janelle A. & Ye Meng & Chen Wendy, 2023. "A Tax Credit Proposal for Profit Moderation and Social Mission Maximization in Long-Term Residential Care Businesses," Nonprofit Policy Forum, De Gruyter, vol. 14(1), pages 77-97, January.
    • Handle: RePEc:bpj:nonpfo:v:14:y:2023:i:1:p:77-97:n:5
    DOI: 10.1515/npf-2022-0014
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/npf-2022-0014
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/npf-2022-0014?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chou, Shin-Yi, 2002. "Asymmetric information, ownership and quality of care: an empirical analysis of nursing homes," Journal of Health Economics, Elsevier, vol. 21(2), pages 293-311, March.
    2. Antony Bugg-Levine & Jed Emerson, 2011. "Impact Investing: Transforming How We Make Money while Making a Difference," Innovations: Technology, Governance, Globalization, MIT Press, vol. 6(3), pages 9-18, July.
    3. Katz, A.S. & Brisbois, B. & Zerger, S. & Hwang, S.W., 2018. "Social Impact Bonds as a Funding Method for Health and Social Programs: Potential Areas of Concern," American Journal of Public Health, American Public Health Association, vol. 108(2), pages 210-215.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John R. Bowblis & Andrew Ghattas, 2017. "The Impact of Minimum Quality Standard Regulations on Nursing Home Staffing, Quality, and Exit Decisions," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 50(1), pages 43-68, February.
    2. Belen Lopez & Alfonso Torres & Alberto Ruozzi & Jose Antonio Vicente, 2020. "Main Factors for Understanding High Impacts on CSR Dimensions in the Finance Industry," Sustainability, MDPI, vol. 12(6), pages 1-17, March.
    3. Erwan Quéinnec, 2012. "Les organisations sans but lucratif repondent- elles à une demande de biens de confiance ? Le cas des services de prise en charge," Revue d'économie politique, Dalloz, vol. 122(1), pages 67-87.
    4. Caterina Galluccio, 2023. "Crime Prevention through Social Finance and Social Impact Bonds," Sociology and Social Work Review, International Society for projects in Education and Research, vol. 7(2), pages 112-120, December.
    5. Anthony Piscitelli, 2023. "Classifying responsible investors: Identifying clusters of Ontario investors," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(4), pages 1133-1144, December.
    6. Irene Bengo & Leonardo Boni & Alessandro Sancino, 2022. "EU financial regulations and social impact measurement practices: A comprehensive framework on finance for sustainable development," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(4), pages 809-819, July.
    7. Bergman, Mats A. & Johansson, Per & Lundberg, Sofia & Spagnolo, Giancarlo, 2016. "Privatization and quality: Evidence from elderly care in Sweden," Journal of Health Economics, Elsevier, vol. 49(C), pages 109-119.
    8. Patrick HERBST & Jens PRUFER, 2016. "Firms, Nonprofits, And Cooperatives: A Theory Of Organizational Choice," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 87(3), pages 315-343, December.
    9. Shaker A. Zahra & Lance R. Newey & Yong Li, 2014. "On the Frontiers: The Implications of Social Entrepreneurship for International Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 38(1), pages 137-158, January.
    10. Herr, A. & Saric, A., 2016. "The Welfare Effects of Single Rooms in German Nursing Homes: A Structural Approach," Health, Econometrics and Data Group (HEDG) Working Papers 16/23, HEDG, c/o Department of Economics, University of York.
    11. Kyoungrae Jung & Daniel Polsky, 2014. "Competition And Quality In Home Health Care Markets," Health Economics, John Wiley & Sons, Ltd., vol. 23(3), pages 298-313, March.
    12. Mazzuca, Maria & Panzera, Elena & Ruberto, Sabrina, 2023. "The investor's participation in social impact bonds," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 349-363.
    13. Albert H. Choi, 2015. "Non-Profit Status and Relational Sanctions: Commitment to Quality through Repeat Interactions and Organizational Choice," Journal of Law and Economics, University of Chicago Press, vol. 58(4).
    14. Sean Shenghsiu Huang & John R. Bowblis, 2019. "Private equity ownership and nursing home quality: an instrumental variables approach," International Journal of Health Economics and Management, Springer, vol. 19(3), pages 273-299, December.
    15. Miguel Poiares Maduro & Giulio Pasi & Gianluca Misuraca, 2018. "Social Impact Investment in the EU. Financing strategies and outcome oriented approaches for social policy innovation: narratives, experiences, and recommendations," JRC Research Reports JRC111373, Joint Research Centre.
    16. Jens Prüfer, 2011. "Competition And Mergers Among Nonprofits," Journal of Competition Law and Economics, Oxford University Press, vol. 7(1), pages 69-92.
    17. repec:zbw:rwirep:0495 is not listed on IDEAS
    18. Laura Toschi & Elisa Ughetto & Andrea Fronzetti Colladon, 2023. "The identity of social impact venture capitalists: exploring social linguistic positioning and linguistic distinctiveness through text mining," Small Business Economics, Springer, vol. 60(3), pages 1249-1280, March.
    19. Alet C. Erasmus & Geoffrey Tocknell & Flip Schutte, 2023. "The potential of crowdfunding to promote business in the context of an emerging economy," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(3), pages 558-569, September.
    20. Daniel P. McMillen & Elizabeth T. Powers, 2017. "The eldercare landscape: Evidence from California," Health Economics, John Wiley & Sons, Ltd., vol. 26(S2), pages 139-157, September.
    21. Henrietta N. Onwuegbuzie & Oluwasoye P. Mafimisebi & Adun Okupe & Eseroghene Orighoyegha, 2022. "Indigenous Knowledge and Africapitalism: An Unexploited Source for Sustainable Development," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 8(2), pages 244-257, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:nonpfo:v:14:y:2023:i:1:p:77-97:n:5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.