These decisions are related because an increase in the percentage of revenues, that the nonprofit hospital sacrifices for charity care, might enhance the motivation of its workers and induce some of them to donate their labor, that is, to volunteer. On the other hand, the provider chooses which health professionals to hire, without observing their heterogeneous skills and their pro‐social motivation. On the one hand, it chooses its organizational form: a hospital can be a for‐profit institution providing compensated care only, or it can be a nonprofit organization whose mission is enhancing access to care for uninsured, low‐income patients. Local conditions are going to play an important role.Ī healthcare provider faces two decision problems. From a policy point of view, our review suggests that there does not seem to be aĬlear answer to whether this market form should be used. Research into patients choices seems to suggest that ownership is a value, but the empirical literature Questions shows that public hospitals behave differently from private organisations, but they are not necessarily Public hospitals as reference suppliers, and quality of care is important. In general, pure forms (private or public competition) are superior to mixed markets, unless patients interpret ![]() Markets perform better in terms of average quality, and we review the empirical literature to determine whether In this paper we show under which conditions mixed Review the contributions in this field by proposing a common framework which allows to account for the differentĪpproaches proposed to model public hospitals. Mixed markets, where public hospitals compete alongside private ones,Īre increasingly common, but the literature does not agree on their performances and their desirability. ![]() Market oriented reforms in hospital care have produced a variety of quasi markets that differ for the type of
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