scholarly journals Constraining Managers without Owners: Governance of the Not-for-Profit Enterprise

2015 ◽  
Vol 4 (1) ◽  
pp. 53-72 ◽  
Author(s):  
Mihir A. Desai ◽  
Robert J. Yetman
Keyword(s):  
Social Insurance ◽  
State Level ◽  
Managerial Compensation ◽  
Economic Shocks ◽  
For Profit ◽  
Not For Profit ◽  
Governance Environment ◽  
Profit Performance ◽  
Effective Organization ◽  
Jel Classifications

ABSTRACT In the absence of owners, how effective are the constraints imposed by the state in promoting effective organization governance? This paper develops state-level indices of the governance environment facing not-for-profits and examines the effects of these rules on not-for-profit behavior. Stronger provisions aimed at detecting and punishing managerial misbehavior are associated with significantly greater charitable expenditures, increased foundation payouts, and lower managerial compensation. The paper also examines how governance influences an alternative metric of not-for-profit performance—the provision of social insurance. Stronger governance measures are associated with intertemporal smoothing of resources in response to economic shocks. JEL Classifications: L30; G30; H40; K20.

Unpacking Not-for-profit Performance

2013 ◽  
Vol 5 (1) ◽  
pp. 77-106 ◽  
Author(s):  
Edward N. Gamble ◽  
Peter W. Moroz
Keyword(s):  
For Profit ◽  
Not For Profit ◽  
Profit Performance

scholarly journals Not-for-Profit Performance Reporting: A Reflection on Methods, Results and Implications for Practice and Regulation

2021 ◽  
Author(s):  
Danielle McConville ◽  
Carolyn Cordery
Keyword(s):  
Research Data ◽  
For Profit ◽  
Not For Profit ◽  
Performance Reporting ◽  
Profit Performance ◽  
Research Questions ◽  
The Impact ◽  
Interesting Area ◽  
Prevailing View

AbstractThis paper presents a critical analysis of present approaches to studying not-for-profit performance reporting, and implications of research in this area. Focusing on three approaches: content analysis of publicly available performance reporting; quantitative analysis of financial data; and (rarer) mixed/other methods, we consider the impact of these on our knowledge of not-for-profit performance reporting, highlighting gaps and suggesting further research questions and methods. Our analysis demonstrates the important role of regulation in determining the research data available, and the impact of this on research methods. We inter-connect the methods, results and prevailing view of performance reporting in different jurisdictions and argue that this reporting has the potential to influence both charity practices and regulators’ actions. We call for further research in this interesting area. Contribution is made to the methodological literature on not-for-profits, and ongoing international conversations on regulating not-for-profit reporting.

Medicaid Expansion and Not-For-Profit Hospitals’ Financial Status: National and State-Level Estimates Using IRS and CMS Data, 2011-2016

2021 ◽  
pp. 107755872110097
Author(s):  
Tatiane Santos ◽  
Simone Singh ◽  
Gary J. Young
Keyword(s):  
Hospital Costs ◽  
State Level ◽  
Medicaid Expansion ◽  
Financial Status ◽  
For Profit ◽  
Not For Profit ◽  
Percentage Points ◽  
The Difference ◽  
Using Data ◽  
The Impact

Several studies have shown that Medicaid expansion has improved hospital financial performance. All of these studies have either used data from the Internal Revenue Service (IRS) or the Centers for Medicare and Medicaid Services (CMS), and none of them has examined the state-level impact of expansion on hospital finances. Using data for not-for-profit hospitals from both IRS and CMS for 2011-2016, we described the difference in costs related to uncompensated care and Medicaid shortfalls. We then estimated the impact of Medicaid expansion on hospitals’ financial status nationally and by state. Nationally, the estimated net effect of expansion reduced not-for-profit hospital costs by 2 percentage points based on IRS data and 0.83 percentage points based on CMS data. Across expansion states, the estimated net effects varied widely with approximately a 10-fold difference for hospitals based on IRS data and a 2-fold difference based on CMS data. Future studies should further explore the differences across IRS and CMS data.

scholarly journals Does Managed Care Change the Management of Nonprofit Hospitals? Evidence from the Executive Labor Market

ILR Review ◽  
2005 ◽  
Vol 58 (3) ◽  
pp. 494-514 ◽  
Author(s):  
Marianne Bertrand ◽  
Kevin F. Hallock ◽  
Richard Arnould
Keyword(s):  
Labor Market ◽  
Executive Turnover ◽  
Executive Pay ◽  
Nonprofit Hospitals ◽  
For Profit ◽  
Top Executives ◽  
Not For Profit ◽  
Profit Performance ◽  
Top Executive ◽  
Care Change

This paper examines how the managerial labor market in nonprofit hospitals has adjusted to the financial pressures induced by HMO penetration. Using a panel of about 1,500 nonprofit hospitals over the period 1992–96, the authors find that top executive turnover increased following an increase in HMO penetration. Moreover, the increase in turnover was concentrated among the hospitals that had lower levels of economic profitability. While the link between top executive pay and for-profit performance measures was on average very weak, HMO penetration tightened that link: as HMO penetration increased, top executives were compensated more for improving the profitability of their hospitals. These results, while of limited economic magnitude, are qualitatively consistent with the view that HMO penetration has increased the weight assigned to for-profit performance in the management of not-for-profit hospitals.

scholarly journals Spiritually Informed Not-for-profit Performance Measurement

2015 ◽  
Vol 141 (3) ◽  
pp. 451-468 ◽  
Author(s):  
Edward N. Gamble ◽  
Haley A. Beer
Keyword(s):  
Performance Measurement ◽  
For Profit ◽  
Not For Profit ◽  
Profit Performance

Funding Sources and Excess CEO Compensation in Not-for-Profit Organizations

2013 ◽  
Vol 28 (1) ◽  
pp. 1-16 ◽  
Author(s):  
Jennifer J. Gaver ◽  
S. Mary Im
Keyword(s):  
Agency Costs ◽  
Ceo Compensation ◽  
Data Availability ◽  
Government Grants ◽  
For Profit ◽  
Funding Sources ◽  
Not For Profit ◽  
Jel Classifications ◽  
Not For Profit Organizations ◽  
For Profit Organizations

SYNOPSIS We examine the relation between funding composition and excess CEO compensation in not-for-profit organizations (NFPs). Our sample consists of 105,400 observations from 15,412 unique organizations during 1992 to 2007. The results suggest that excess CEO compensation is negatively related to funding from government grants, government-paid program service revenues, and public donations. Excess CEO compensation is positively related to funding from investment income. Our findings generally support the view that the demand for monitoring by fund providers is associated with agency costs in NFP organizations. JEL Classifications: D23; L31; M48. Data Availability: The data used in this study are available from the National Center for Charitable Statistics.

The Development of Not-For-Profit Hospital Cost Models

1988 ◽  
Vol 6 (1) ◽  
pp. 35-48
Author(s):  
Greg M. Thibadoux ◽  
Nicholas Apostolou ◽  
Ira S. Greenberg
Keyword(s):  
Hospital Cost ◽  
Cost Models ◽  
For Profit ◽  
Not For Profit
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