The Quality of Health Care
A Case-Study Investigation of Charity Care and Essential Service Provision Following Hospital Conversion to For-Profit Status
Research Report
Deborah J. Chollet, Ph.D., Alpha Center
Adele M. Kirk, M.H.A., Alpha Center
July 1999
This 37-page Issue Paper authored by Deborah J. Chollet and Adele M. Kirk of Alpha Center examined the circumstances and corporate histories of several hospitals throughout the United States that converted to for-profit ownership between 1983 and 1994. The study was designed to learn about hospital decisions and community relationships concerning the delivery of care and essential services after conversion to for-profit ownership. This study demonstrates how for-profit ownership can change the mission and management of affected not-for-profit institutions. Few hospitals were major providers of uncompensated care either before or after conversion. Study findings suggest that the push for hospital service modifications (either expansion or discontinuation) comes from management changes that can follow hospital conversions. Finally, the study highlights the effect of frequent changes in hospital ownership and management on surrounding communities, as well as consumers' sensitivity to hospital changes after conversion.
Pub ID: 9907