This PDF is a selection from an out-of-print volume from the National Bureauof Economic Research

Volume Title: The Changing Hospital Industry: Comparing For-Profit andNot-for-Profit Institutions

Volume Author/Editor: David M. Cutler, editor

Volume Publisher: University of Chicago Press

Volume ISBN: 0-226-13219-6

Volume URL: http://www.nber.org/books/cutl00-1

Publication Date: January 2000

Chapter Title: Front matter "The Changing Hospital Industry Comparing Not-for-Profitand For-Profit Institutions"

Chapter Author: David M. Cutler

Chapter URL: http://www.nber.org/chapters/c6755

Chapter pages in book: (p. -12 - 0)

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The Changing Hospital Industry

A National Bureau

of Economic Research

Conference Report

The Changing Hospital Industry Comparing Not-for-Profit and For-Profit Institutions

Edited by David M. Cutler

The University of Chicago Press

Chicago and London

DAVID M. CUTLER is professor of economics at Harvard University and a research associate of the National Bureau of Economic Research.

The University of Chicago Press, Chicago 60637 The University of Chicago Press, Ltd., London 0 2000 by the National Bureau of Economic Research All rights reserved. Published 2000 Printed in the United States of America 09080706050403020100 1 2 3 4 5 ISBN: 0-226-13219-6 (cloth)

Library of Congress Cataloging-in-Publication Data

The changing hospital industry : comparing not-for-profit and for- profit institutions / edited by David M. Cutler.

conference report) p. an.-(A National Bureau of Economic Research

Includes bibliographical references and index. ISBN 0-226-13219-6 (alk. paper) 1. Hospitals-Economic aspects-United States. I. Cutler,

David M. 11. Series: Conference report (National Bureau of Economic Research) RA971.3.C48 2000 338.4'73621 1 '0973-DC21 99-27207

ClP

@ The paper used in this publication meets the minimum requirements of the American National Standard for Information Sciences-Permanence of Paper for Printed Library Materials, ANSI 239.48-1992.

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Since this volume is a record of conference proceedings, it has been exempted from the rules governing critical review of manuscripts by the Board of Directors of the National Bureau (resolution adopted 8 June 1948, as revised 21 November 1949 and 20 April 1968).

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Contents

Acknowledgments

Introduction David M. Cutler

I. HOSPITAL CONVERSIONS TO FOR-PROFIT FORM

1. Hospital Conversions: Is the Purchase Price Too Low? Frank A. Sloan, Donald H. Taylor, Jr., and Christopher J. Conover

2. Converting Hospitals from Not-for-Profit to For-Profit Status: Why and What Effects? David M. Cutler and Jill R. Horwitz Comments on chaps. I and 2:

M. Kathleen Kenyon James B. Rebitzer

11. MEDICAL CARE QUALITY IN FOR-PROFIT AND NOT-FOR-PROFIT ORGANIZATIONS

3. Comparing Hospital Quality at For-Profit and Not-for-Profit Hospitals Mark McClellan and Douglas Staiger

ix

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13

45

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viii Contents

4. The Adoption and Impact of Advanced Emergency Response Services 113 Susan Athey and Scott Stern Comments on chaps. 3 und 4:

Catherine Wolfram Karen Norberg

5. How Much Is Enough? Efficiency and Medicare Spending in the Last Six Months of Life Jonathan Skinner and John E. Wennberg

6. Market Forces, Diversification of Activity, and the Mission of Not-for-Profit Hospitals Richard G. Frank and David S. Salkever Comments on chaps. 5 and 6:

169

195

Bradford H. Gray Frank Lichtenberg

111. MANAGED CARE AND HOSPITAL QUALITY

7. Managed Care and Provider Volume 229 Sarah Feldman and David Scharfstein

8. Implications of Managed Care for Teaching Hospitals: Comparisons of Traditional and Managed Care Medical Services within a Single Institution David Meltzer, Frederick L. Hiltz, and David Bates Comments on chaps. 7 and 8:

Laurence Baker Alan Weil

249

IV. TAXATION AND INFORMATION

9. The Tax Benefits of Not-for-Profit Hospitals William M. Gentry and John R. Penrod

285

10. Asymmetric Information and the Not-for-Profit Sector: Does Its Output Sell at a Premium? Tomas Philipson Comment on chaps. 9 and 10:

Judith K. Hellerstein Comment on chap. 10:

William B. Vogt

325

357 36 1 365

Contributors Author Index Subject Index

Acknowledgments

The research papers collected in this volume were presented at a National Bureau of Economic Research conference held in Palm Beach, Florida, in November 1997. I am grateful to Jason Barro and Mark Duggan for serv- ing as rapporteurs and to Kirsten Foss Davis for planning and organizing the meeting.

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