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The Demise of Hospital Philanthropy

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  • Sloan, Frank A, et al

Abstract

The authors develop a one-period model of hospital and donor behavior to analyze how insurance for hospital care, various public subsidies, and other factors affect donations to hospitals. Theoretically, increased insurance coverage has an ambiguous effect on private giving. Empirical tests using time series and cross-sectional data show that the growth of private insurance, and especially the introduction of Medicare and Medicaid, substantially reduces private giving to hospitals. Effects of public subsidies for construction depend on whether the subsidy more closely resembles a matching or lump-sum grant. Coauthors are Thomas J. Hoerger, Michael A. Morrisey, and Mahud Hassan. Copyright 1990 by Oxford University Press.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Economic Inquiry.

Volume (Year): 28 (1990)
Issue (Month): 4 (October)
Pages: 725-43

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Handle: RePEc:oup:ecinqu:v:28:y:1990:i:4:p:725-43

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Cited by:
  1. Frank A. Sloan & Gabriel A. Picone & Donald H. Taylor, Jr. & Shin-Yi Chou, 1999. "Does Where You Are Admitted Make a Difference? An Analysis of Medicare Data," NBER Working Papers 6896, National Bureau of Economic Research, Inc.
  2. Gentry, William M., 2002. "Debt, investment and endowment accumulation: the case of not-for-profit hospitals," Journal of Health Economics, Elsevier, vol. 21(5), pages 845-872, September.
  3. Seungchul Lee & Robert Rosenman, 2012. "Reimbursement and Investment: Propsective Payment and For-Profit Hospitals' Market Share," Working Papers 2012-3, School of Economic Sciences, Washington State University.
  4. Ligon, James A., 1997. "The capital structure of hospitals and reimbursement policy," The Quarterly Review of Economics and Finance, Elsevier, vol. 37(1), pages 59-77.
  5. Sujoy Chakravarty & Martin Gaynor & Steven Klepper & William B. Vogt, 2005. "Does the Profit Motive Make Jack Nimble? Ownership Form and the Evolution of the U.S. Hospital Industry," NBER Working Papers 11705, National Bureau of Economic Research, Inc.

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