THE DEMISE OF HOSPITAL PHILANTHROPY

FRANK A. SLOAN, THOMAS J. HOERGER, MICHAEL A. MORRISEY, MAHUD HASSAN

Research output: Contribution to journalArticlepeer-review

18 Scopus citations

Abstract

We 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 lumpsum grant.

Original languageEnglish (US)
Pages (from-to)725-743
Number of pages19
JournalEconomic Inquiry
Volume28
Issue number4
DOIs
StatePublished - Oct 1990
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting(all)
  • Economics and Econometrics

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