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Hospital Competition and Charity Care

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  • Garmon Chris

    (Federal Trade Commission)

Abstract

This paper explores the relationship between competition and hospital charity care by analyzing changes in charity care associated with changes in a hospital's competitive environment (due to mergers and divestitures), using hospital financial and discharge data from Florida and Texas. Despite the pervasive belief that competition impedes a hospital's ability to offer services to the uninsured and under-insured, I find no statistically significant evidence that increased competition leads to reductions in charity care. In fact, I find some evidence that reduced competition leads to higher prices for uninsured patients.

Suggested Citation

  • Garmon Chris, 2009. "Hospital Competition and Charity Care," Forum for Health Economics & Policy, De Gruyter, vol. 12(1), pages 1-35, May.
    • Handle: RePEc:bpj:fhecpo:v:12:y:2009:i:1:n:2
    DOI: 10.2202/1558-9544.1130
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    Cited by:

    1. Cory S. Capps & Dennis W. Carlton & Guy David, 2020. "Antitrust Treatment Of Nonprofits: Should Hospitals Receive Special Care?," Economic Inquiry, Western Economic Association International, vol. 58(3), pages 1183-1199, July.
    2. Nathan E. Wilson, 2021. "The Impact of Competition on Investment: Evidence From California Hospitals," Journal of Industrial Economics, Wiley Blackwell, vol. 69(1), pages 1-32, March.

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