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Not-for-Profit Hospitals and the Quality of Medical Care

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  • Kazuhiko Mikami

Abstract

It has been argued in the literature that limiting the profits of hospitals can be an effective method of maintaining the quality of medical care. The present paper examines this hypothesis using a simple formal model of the health-care market under asymmetric information. It is shown that, in some situations, the quality of medical care can be secured by imposing a limited-distribution constraint on hospitals.

Suggested Citation

  • Kazuhiko Mikami, 2013. "Not-for-Profit Hospitals and the Quality of Medical Care," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 169(3), pages 490-505, September.
    • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(201309)169:3_490:nhatqo_2.0.tx_2-s
    DOI: 10.1628/093245613X13626680790487
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    References listed on IDEAS

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    1. Jill R. Horwitz & Austin Nichols, 2007. "What Do Nonprofits Maximize? Nonprofit Hospital Service Provision and Market Ownership Mix," NBER Working Papers 13246, National Bureau of Economic Research, Inc.
    2. Glaeser, Edward L. & Shleifer, Andrei, 2001. "Not-for-profit entrepreneurs," Journal of Public Economics, Elsevier, vol. 81(1), pages 99-115, July.
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    More about this item

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship

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