The Role of Donations in Quality Disclosure: Evidence from Nonprofit Nursing Homes Full Access

Susan F. Lu ()
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Susan F. Lu: Purdue University

American Journal of Health Economics, 2016, vol. 2, issue 4, 431-462

Abstract: This paper uses a quality disclosure policy--the Nursing Home Quality Initiative, which mandates the public reporting of quality information on selected dimensions--to investigate how nonprofit nursing homes react to economic incentives. The study finds that nonprofits are as responsive as for-profits to quality disclosure: quality improves along the reported dimensions and diminishes along the unreported ones. Further tests show that nonprofits may respond to donations and fail to mimic for-profits when competing with them. These findings suggest that donor response may be the motive for nonprofits to respond to quality disclosure in the same way as for-profit alternatives.

Keywords: nonprofit; quality disclosure; donation; teaching-to-the-test (search for similar items in EconPapers)
JEL-codes: I12 I18 L15 L33 L51 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:tpr:amjhec:v:2:y:2016:i:4:p:431-462

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