Does It Matter Who Your Buyer Is? The Role of Nonprofit Mission in the Market for Corporate Control of Hospitals
AbstractThe hospital industry is one of this country's largest mixed industries, with for-profit, nonprofit, and government hospitals operating in the same local markets. But how do ownership types differ? Previous studies have compared costs among different hospitals. However, these studies have not been entirely successful because costs cannot be meaningfully compared without controlling for hard-to-measure quality of service. In this study, we look to the market for corporate control-or takeovers-for evidence of ownership-related differences. We find that nonprofit and for-profit firms pay different prices and that these differences relate to the nonprofit's mission. Specifically, nonprofits and for-profits pay the same price when buying for-profits, but nonprofits pay less when buying a "like-minded" nonprofit (so religious nonprofits pay less for other religious nonprofits, for example). The resulting dual-price equilibrium suggests that nonprofits have a different objective than do for-profits but also that nonprofits behave competitively and efficiently when interacting with for-profits. (c) 2009 by The University of Chicago. All rights reserved..
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by University of Chicago Press in its journal The Journal of Law and Economics.
Volume (Year): 52 (2009)
Issue (Month): 2 (05)
Contact details of provider:
Web page: http://www.journals.uchicago.edu/JLE/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Lapo Filistrucchi & Jens Prufer, 2014.
"Faithful Strategies: How Religion Shapes Nonprofit Management,"
Working Papers - Economics
wp2014_01.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
- Filistrucchi, L. & Prüfer, J., 2013. "Faithful Strategies: How Religion Shapes Nonprofit Management," Discussion Paper 2013-052, Tilburg University, Center for Economic Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.