Nonprofit Organizations in the Health Sector

Richard G. Frank and David Salkever ()

Journal of Economic Perspectives, 1994, vol. 8, issue 4, 129-144

Abstract: Government appears to both promote and mistrust nonprofit organizations in the health sector. Tax exemptions, subsidies, and preferential treatment in contracts support these organizations. Legislation that links the supply of charity care to tax exemptions demonstrates mistrust. In this paper, the authors argue that information asymmetries lie at the heart of the current discomfort with tax policy toward nonprofit health-care providers. The authors examine current policy in terms of the rationale for the exemption of nonprofit health-care organizations from taxes as well as the ability of government to monitor performance of these organizations.

JEL-codes: I11 L31 (search for similar items in EconPapers)
Date: 1994
Note: DOI: 10.1257/jep.8.4.129
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Citations: View citations in EconPapers (25)

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