Business
Report says for-profit, nonprofit hospital mix offers benefits
NEWS IN BRIEF — Posted April 11, 2005
A new study concluded that having a mix of nonprofit and for-profit hospitals in a community can help keep quality and costs in check because of competitive spillover.
The report, published in March by the National Bureau of Economic Research, found that most markets have too many nonprofit and public hospitals. By boosting competition and encouraging more for-profit hospitals to move in, greater quality of care per dollar can be achieved, the study found.
State and local lawmakers could attract more for-profit hospitals by offering inducements such as zoning waivers and construction subsidies, the report said.
The group recommended that a broader, more in-depth study be done before any such policies would be adopted.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2005/04/11/bibf0411.htm.
