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The Role of Donations in Quality Disclosure: Evidence from Nonprofit Nursing Homes Full Access

Listed author(s):
  • Susan F. Lu

    ()

    (Purdue University)

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    This paper uses a quality disclosure policy--the Nursing Home Quality Initiative, which mandates the public reporting of quality information on selected dimensions--to investigate how nonprofit nursing homes react to economic incentives. The study finds that nonprofits are as responsive as for-profits to quality disclosure: quality improves along the reported dimensions and diminishes along the unreported ones. Further tests show that nonprofits may respond to donations and fail to mimic for-profits when competing with them. These findings suggest that donor response may be the motive for nonprofits to respond to quality disclosure in the same way as for-profit alternatives.

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    File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/AJHE_a_00057
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    Article provided by MIT Press in its journal American Journal of Health Economics.

    Volume (Year): 2 (2016)
    Issue (Month): 4 (Fall)
    Pages: 431-462

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    Handle: RePEc:tpr:amjhec:v:2:y:2016:i:4:p:431-462
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