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THE DEMISE OF HOSPITAL PHILANTHROPY
Author(s) -
SLOAN FRANK A.,
HOERGER THOMAS J.,
MORRISEY MICHAEL A.,
HASSAN MAHUD
Publication year - 1990
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1990.tb00828.x
Subject(s) - subsidy , demise , medicaid , private insurance , economics , public economics , uncompensated care , matching (statistics) , health insurance , actuarial science , demographic economics , business , health care , economic growth , medicine , political science , market economy , law , pathology
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.