Relative Productivity of For-Profit Hospitals: A Big or a Little Deal?

Abstract

This study asks: Does the empirical evidence support the conclusion that for-profit (FP) hospitals are more productive or efficient than private not-for-profit (NFP) hospitals or non-federal public (PUB) hospitals? Alternative theories of NFP behavior are described. Our review of individual empirical hospital studies of quality, service mix, community benefit, and cost/efficiency in the United States published since 2000 indicates that no systematic difference exists in cost/efficiency, provision of uncompensated care, and quality of care. But FPs are more likely to provide profitable services, higher service intensity, have lower shares of uninsured and Medicaid patients, and are more responsive to external financial incentives. That FP hospitals are not more efficient runs counter to property rights theory, but their relative responsiveness to financial incentives supports it. There is little evidence that FP market presence changes NFP behaviors. Observed differences between FP and NFP hospitals are mostly a “little deal.”

Community or commodity? Perceived nurse support during the COVID-19 pandemic

“…However, it's outside the scope of this study to directly compare or fully conceptualize the cultural contexts of either US nursing or healthcare administrations. It's also unclear if a cultural conflict between administration and nursing is specific to one or all of the healthcare business models in the US or if it's a global phenomenon 49. Additional research is needed to elucidate cultural conflicts more accurately.…”

“…It's also unclear if a cultural conflict between administration and nursing is specific to one or all of the healthcare business models in the US or if it's a global phenomenon. 49 Additional research is needed to elucidate cultural conflicts more accurately.…”

A Multimethod Approach for Healthcare Information Sharing Systems: Text Analysis and Empirical Data

“…Moreover, the for-profit hospital is answerable to its shareholders and board of directors, prioritizing profit-making as its bottom-line objective. For-profit hospitals prioritize maximizing financial gain [37]. EHR systems can help hospitals streamline administrative processes, reduce medical errors, and improve patient outcomes, ultimately leading to cost savings and increased revenue [35].…”