Hospital ownership and cost and quality of care: is there a dime's worth of difference?

J Health Econ. 2001 Jan;20(1):1-21. doi: 10.1016/s0167-6296(00)00066-7.


Nonprofit organizations may predominate when output quality is difficult to monitor. Hospital care has this characteristic. This study compared program cost and quality of care for Medicare patients hospitalized following onset of four common conditions by hospital ownership. Payments on behalf of Medicare patients admitted to for-profit hospitals during the first 6 months following a health shock were higher than for those admitted to other hospitals. With quality measured in terms of survival, changes in functional and cognitive status, and living arrangements, we found no differences in outcomes by hospital ownership.

Publication types

  • Comparative Study
  • Evaluation Study
  • Research Support, U.S. Gov't, P.H.S.

MeSH terms

  • Aged
  • Hospital Costs / statistics & numerical data*
  • Hospital Mortality
  • Hospitals, Proprietary / economics
  • Hospitals, Proprietary / organization & administration*
  • Hospitals, Proprietary / standards
  • Hospitals, Public / economics
  • Hospitals, Public / organization & administration*
  • Hospitals, Public / standards
  • Hospitals, Voluntary / economics
  • Hospitals, Voluntary / organization & administration*
  • Hospitals, Voluntary / standards
  • Humans
  • Medicare
  • Models, Statistical
  • Ownership*
  • Quality of Health Care / statistics & numerical data*
  • United States