scholarly journals For-Profit Hospitals Have a Unique Opportunity to Serve as Anchor Institutions in the U.S.

2020 ◽  
Author(s):  
Cory E. Cronin ◽  
Berkeley Franz ◽  
Kelly Choyke ◽  
Vanessa Rodriguez ◽  
Brian K. Gran

Abstract Background Hospitals serve as anchor institutions in many U.S. communities and make contributions to bolster population health and reduce preventable death. Most studies to date have focused on nonprofit hospitals, but there may be significant opportunity for for-profits to fill this role in both urban and rural communities. Methods We calculated descriptive statistics and a multivariate regression model to assess economic and health characteristics for all U.S. counties that contain for-profit as compared to nonprofit or public hospitals. Results For-profit hospitals are more likely to be located in counties with higher uninsurance rates and lower self-rated health. After controlling for hospital and county characteristics, we found a significant and positive relationship between for-profit hospital presence and higher county unemployment, higher uninsured rates, and the number of residents reporting poor/fair health. For-profit hospitals were also less likely to be located in states that had expanded Medicaid or which had certificate-of-need laws. Conclusions There is substantial opportunity for for-profit hospitals to serve as anchor institutions in many U.S. communities, despite this label more traditionally being applied to nonprofit hospitals. Given that there is not currently a regular reporting mechanism for documenting the community health contributions of for-profit hospitals, policymakers and researchers should evaluate the current state of these contributions and develop incentives to encourage more anchor activities to benefit economically vulnerable communities in the U.S.

2021 ◽  
pp. 101372
Author(s):  
Cory E. Cronin ◽  
Berkeley Franz ◽  
Kelly Choyke ◽  
Vanessa Rodriguez ◽  
Brian K. Gran

2017 ◽  
Vol 59 (4) ◽  
pp. 114-139 ◽  
Author(s):  
Jill A. Brown ◽  
Peter Gianiodis ◽  
Michael D. Santoro

The U.S. health care industry, like many industries, continues to face the need to adapt to new realities stemming from dynamic changes in the external environment. Some nonprofit hospitals have converted to integrated nonprofit/for-profit structures, fostering intra-firm co-opetition, that is, simultaneous cooperation and competition between units. This article examines this phenomenon and provides recommendations regarding controls and incentives that can help administrators actively manage co-opetition and promote shared utility between units. In industries where talent-intensive human capital competes for common resources and revenues, co-opetition can be a strategic tool to navigate competitive forces.


2017 ◽  
Vol 6 (1) ◽  
pp. 30-51
Author(s):  
Kathryn Chang ◽  
Gene H. Chang

ABSTRACT This paper investigates variations in hospital behaviors and performance outcomes due to ownership type. Conventional economic theory predicts economic efficiency benefits from for-profit control type; however, a broad review of hospital performance literature provides empirical evidence that primarily favors nonprofit hospitals. This paper extends a theoretical model of nonprofit hospitals and develops hypotheses that predict nonprofit hospitals perform better in terms of price, cost, and service volume when compared to for-profit hospitals. Specifically, private nonprofit hospitals provide the highest volume of patient services, whereas public hospitals offer the lowest average price for a comparable service among all hospitals. Examination of a short-term, general acute care hospital sample from the state of California generally supports such conjecture. Managerial implications are also discussed.


1999 ◽  
Vol 27 (2) ◽  
pp. 197-198
Author(s):  
Joseph R. Zakhary

In California Dental Association v. FTC, 119 S. Ct. 1604 (1999), the U.S. Supreme Court reviewed a decision by the U.S. Court of Appeals for the Ninth Circuit that a nonprofit affiliation of dentists violated section 5 of the Federal Trade Commission Act (FTCA), 15 U.S.C.A. § 45 (1998), which prohibits unfair competition. The Court examined two issues: (1) the Federal Trade Commission's (FTC) jurisdiction over the California Dental Association (CDA); and (2) the proper scope of antitrust analysis. The Court unanimously held that CDA was subject to FTC's jurisdiction, but split 5-4 in its finding that the district court's use of abbreviated rule-of-reason analysis was inappropriate.CDA is a voluntary, nonprofit association of local dental societies. It boasts approximately 19,000 members, who constitute roughly threequarters of the dentists practicing in California. Although a nonprofit, CDA includes for-profit subsidiaries that financially benefit CDA members. CDA gives its members access to insurance and business financing, and lobbies and litigates on their behalf. Members also benefit from CDA marketing and public relations campaigns.


1997 ◽  
Vol 23 (2-3) ◽  
pp. 221-250
Author(s):  
Lawrence E. Singer

The pressures encountered by hospitals in the current era of reimbursement declines and stiffened competition are well known. As the “ultimate” payors—primarily employers and government—aggressively continue to seek low cost care, the response of the hospital industry has been to move toward consolidation and efficiency-enhancing mechanisms.Increasingly, nonprofit, tax-exempt hospitals have come to believe that they are at a significant disadvantage vis-á-vis their for-profit brethren in their ability to attract the capital needed to compete in the market. A growing trend among nonprofit hospitals, therefore, is to sell to or enter into a joint venture with a proprietary organization, or alternatively to convert to for-profit status. In 1995, fifty-eight nonprofit hospitals became for-profit; hospital conversions to for-profit status in 1996 are projected to outstrip the pace established the prior year.The conversion trend has not gone unnoticed at the state level. Recently, several states have proposed or enacted laws regulating sales and conversions of nonprofit hospitals, and many more states are contemplating such legislation.


2021 ◽  
pp. 073401682110157
Author(s):  
William Andrew Stadler ◽  
Cheryl Lero Jonson ◽  
Brooke Miller Gialopsos

Despite a recent surge of visitation and frequent media accounts of lawlessness in America’s national parks, little empirical research has been dedicated to crime and law enforcement in the U.S. national park system. The absence of systematic crime and justice research within these protected spaces should raise concern, as recent park service data and intra-agency reports suggest visitor growth, funding and personnel declines, operational shortcomings, and technology constraints may endanger the capacity of the National Park Service (NPS) to adequately address anticipated crime threats in the 21st century. This call for research aims to raise awareness of the contemporary law enforcement challenges facing this federal agency and encourage the study of crime and justice issues within the U.S. national park system. We briefly examine the evolution and current state of NPS law enforcement and its associated challenges and conclude with a conceptual road map for future research occurring in these protected spaces.


Author(s):  
Philippe Choné ◽  
Lionel Wilner

Abstract In the late 2000s, a regulatory reform dramatically strengthened the incentives of French nonprofit hospitals to attract patients. Exploiting exhaustive data for surgery treatments between 2005 and 2008, and modeling hospitals as supplying utility to patients, we show that increased competitive pressure on nonprofit hospitals caused them to perform more procedures, but did not inflate overall activity at the industry level. Although they have gained market shares over their for-profit counterparts, nonprofit hospitals have been significantly worse off after the reform. To adjust to stronger financial incentives, they incurred an additional effort (pecuniary and non-pecuniary costs) equivalent to about a quarter of their annual revenue.


Sign in / Sign up

Export Citation Format

Share Document