Theoretical expectations about the performance and evolution of for-profit and not-for-profit health sector organizations are compared with the results of a qualitative meta-analysis of 58 studies, completed in the 1980s and 1990s. The objective is to characterize changing patterns of nonprofit and for-profit provision of health care over the last decade, anticipate future trends, and outline policy consequences. The Linder model is employed to generate hypotheses about the changing revenue source base and inter-sector partnering for non-profits and for-profit health sector organizations.
Specifically, the strengths and weaknesses of nonprofits and for-profit health care providers are discussed. The comparative performance of each sector as regards medical-loss ratio, cost-effectiveness, quality, and provision of charity care is described. Changing revenue sources are analyzed.
In recent years, the nonprofits have learned the cost-savings techniques of the for-profits and have begun to imitate them in other ways as well. Today there is little difference in cost between the for-profits and not-for-profits in health care, but increasing evidence of quality superiority of the not-for-profits.
The possible behavioral and structural convergence of the nonprofits and for-profits is articulated. Economists argue that there is a trade off between quality and cost. If this is the case, then the nonprofits may well become so efficient that their costs fall below those of the for-profits. At the conclusion of this presentation, participants will be able to assess whether or not nonprofits health providers might lose their quality advantage over the for-profits, sacrificing their historical mission, and jeopardizing their special legal status?
Learning Objectives: Theoretical expectations about the performance and evolution of for-profit and not-for-profit health sector organizations are compared with the results of a qualitative meta-analysis of 58 studies, completed in the 1980s and 1990s. The objective is to characterize changing patterns of nonprofit and for-profit provision of health care over the last decade, anticipate future trends, and outline policy consequences. The Linder model is employed to generate hypotheses about the changing revenue source base and inter-sector partnering for non-profits and for-profit health sector organizations. Specifically, the strengths and weaknesses of nonprofits and for-profit health care providers are discussed. The comparative performance of each sector as regards medical-loss ratio, cost-effectiveness, quality, and provision of charity care is described. Changing revenue sources are analyzed. In recent years, the nonprofits have learned the cost-savings techniques of the for-profits and have begun to imitate them in other ways as well. Today there is little difference in cost between the for-profits and not-for-profits in health care, but increasing evidence of quality superiority of the not-for-profits. The possible behavioral and structural convergence of the nonprofits and for-profits is articulated. Economists argue that there is a trade off between quality and cost. If this is the case, then the nonprofits may well become so efficient that their costs fall below those of the for-profits. At the conclusion of this presentation participants will be able to assess whether or not nonprofits health providers might lose their quality advantage over the for-profits, sacrificing their historical mission, and jeopardizing their special legal status?
Keywords: Providers, Policy/Policy Development
Presenting author's disclosure statement:
Organization/institution whose products or services will be discussed: none
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.