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Hospital Ownership and Quality of Care: What Explains the Different Results?

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  • Karen Eggleston
  • Yu-Chu Shen
  • Joseph Lau
  • Christopher H. Schmid
  • Jia Chan

Abstract

Does quality of care systematically differ among government-owned, private not-for-profit, and for-profit hospitals? A large empirical literature provides conflicting evidence. Through quantitative review of 46 studies since 1990, we find that several study features that can explain divergent results: analytic methods, disease studied, and data sources. For unprofitable care, how studies handle market competition and regional differences account for substantial variation. Policymakers should be aware that differences in results appear to arise predominantly from differences between studies%u2019 analytic methods. Moreover, conventional methods of meta-analytic synthesis should be applied with great caution given the considerable overlap among studied hospitals.

Suggested Citation

  • Karen Eggleston & Yu-Chu Shen & Joseph Lau & Christopher H. Schmid & Jia Chan, 2006. "Hospital Ownership and Quality of Care: What Explains the Different Results?," NBER Working Papers 12241, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:12241
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    File URL: http://www.nber.org/papers/w12241.pdf
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    References listed on IDEAS

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    1. Sloan, Frank A., 2000. "Not-for-profit ownership and hospital behavior," Handbook of Health Economics,in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 21, pages 1141-1174 Elsevier.
    2. Yu-Chu Shen & Karen Eggleston & Joseph Lau & Christopher Schmid, 2005. "Hospital Ownership and Financial Performance: A Quantitative Research Review," NBER Working Papers 11662, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Karen Eggleston & Yu-Chu Shen & Joseph Lau & Christopher H. Schmid & Jia Chan, 2008. "Hospital ownership and quality of care: what explains the different results in the literature?," Health Economics, John Wiley & Sons, Ltd., vol. 17(12), pages 1345-1362.
    2. Pierre Koning, 2008. "Not-for-Profit Provision of Job Training and Mediation Services: An Empirical Analysis Using Contract Data of Job Training Service Providers," De Economist, Springer, vol. 156(3), pages 221-239, September.
    3. Pauline Allen & Will Bartlett & Virginie Perotin & Bernarda Zamora & Simon Turner, 2011. "New Forms Of Provider In The English National Health Service," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 82(1), pages 77-95, March.
    4. Pierre Koning & Joëlle Noailly & Sabine Visser, 2007. "Do non-profits make a difference? Evaluating non-profit vis-à-vis for-profit organisations in social services," CPB Document 142, CPB Netherlands Bureau for Economic Policy Analysis.
    5. Pierre Koning & Joëlle Noailly & Sabine Visser, 2007. "Do Not-For-Profits Make a Difference in Social Services? A Survey Study," De Economist, Springer, vol. 155(3), pages 251-270, September.

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    JEL classification:

    • I1 - Health, Education, and Welfare - - Health

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