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The Demise of Hospital Philanthropy

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  • Sloan, Frank A, et al

Abstract

The authors develop a one-period model of hospital and donor behavior to analyze how insurance for hospital care, various public subsidies, and other factors affect donations to hospitals. Theoretically, increased insurance coverage has an ambiguous effect on private giving. Empirical tests using time series and cross-sectional data show that the growth of private insurance, and especially the introduction of Medicare and Medicaid, substantially reduces private giving to hospitals. Effects of public subsidies for construction depend on whether the subsidy more closely resembles a matching or lump-sum grant. Coauthors are Thomas J. Hoerger, Michael A. Morrisey, and Mahud Hassan. Copyright 1990 by Oxford University Press.

Suggested Citation

  • Sloan, Frank A, et al, 1990. "The Demise of Hospital Philanthropy," Economic Inquiry, Western Economic Association International, vol. 28(4), pages 725-743, October.
    • Handle: RePEc:oup:ecinqu:v:28:y:1990:i:4:p:725-43
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    Cited by:

    1. Arthur Sensenig & Ernest Wilcox, 2001. "National Health Accounts/National Income and Product Accounts Reconciliation -- Hospital Care and Physician Services," NBER Chapters, in: Medical Care Output and Productivity, pages 271-302, National Bureau of Economic Research, Inc.
    2. Gentry, William M., 2002. "Debt, investment and endowment accumulation: the case of not-for-profit hospitals," Journal of Health Economics, Elsevier, vol. 21(5), pages 845-872, September.
    3. Seungchul Lee & Robert Rosenman, 2013. "Reimbursement and Investment: Prospective Payment and For-Profit Hospitals’ Market Share," Journal of Industry, Competition and Trade, Springer, vol. 13(4), pages 503-518, December.
    4. Sujoy Chakravarty & Martin Gaynor & Steven Klepper & William B. Vogt, 2006. "Does the profit motive make Jack nimble? Ownership form and the evolution of the US hospital industry," Health Economics, John Wiley & Sons, Ltd., vol. 15(4), pages 345-361, April.
    5. Frank A. Sloan & Gabriel A. Picone & Donald H. Taylor, Jr. & Shin-Yi Chou, 1999. "Does Where You Are Admitted Make a Difference? An Analysis of Medicare Data," NBER Chapters, in: Frontiers in Health Policy Research, volume 2, pages 1-26, National Bureau of Economic Research, Inc.
    6. Ligon, James A., 1997. "The capital structure of hospitals and reimbursement policy," The Quarterly Review of Economics and Finance, Elsevier, vol. 37(1), pages 59-77.

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