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Unhealthy Profits

Author

Listed:
  • Mouré, Christopher
  • Gorsky, Shai

Abstract

FROM THE ARTICLE: At the end of November 2023, the New York Times published an editorial: Why Are Nonprofit Hospitals Focused More on Dollars Than Patients? It is certainly a valid question. Most people might assume that not-for-profit (NFP) organisations focus on providing a public benefit rather than profit. At most, common wisdom suggests that any income derived from providing a service should be reinvested into expanding or improving the service. There is no obvious reason why a NFP should accumulate large profits over years. Yet in the NFP world of large US hospitals, profit, rather than public purpose, seems to have become the guiding light.

Suggested Citation

  • Mouré, Christopher & Gorsky, Shai, 2023. "Unhealthy Profits," EconStor Preprints 280860, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:280860
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    More about this item

    Keywords

    differential accumulation; hospitals; not-for-profit; profit; United States;
    All these keywords.

    JEL classification:

    • P - Political Economy and Comparative Economic Systems
    • P1 - Political Economy and Comparative Economic Systems - - Capitalist Economies
    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • I1 - Health, Education, and Welfare - - Health
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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