A Tax Credit Proposal for Profit Moderation and Social Mission Maximization in Long-Term Residential Care Businesses

Kerlin Janelle A. (), Ye Meng () and Chen Wendy ()
Additional contact information
Kerlin Janelle A.: Department of Public Management and Policy, Georgia State University, 14 Marietta St NW, Suite 356, 30303, Atlanta, GA, USA
Ye Meng: Department of Public Management and Policy, Georgia State University, 14 Marietta St NW, Suite 356, 30303, Atlanta, GA, USA
Chen Wendy: Department of Political Science, Texas Tech University, 79409, Lubbock, TX, USA

Nonprofit Policy Forum, 2023, vol. 14, issue 1, 77-97

Abstract: This policy brief proposes a tax credit with related qualifying conditions that address the serious deficiencies related to abuse and neglect found in the current for-profit long-term care space. It also seeks to address the lack of government accountability for huge outlays of taxpayer dollars in the form of Medicare and Medicaid payments to these facilities, much of which results in maximizing profits for wealthy investors at the expense of vulnerable individuals with limited voice. Our proposed policy arrangement alters the organizational DNA of the for-profit organization, including the moderation of profit, to circumvent the existing financial incentives that are driving the mistreatment and malpractice so evident in the system. It aims to achieve this through four policy components including social financing, a sliding dividend cap, employee-ownership, and limits on complex corporate structures which are tied to a tax credit. This multi-faceted policy idea is intended to start the discussion around a possible path forward.

Keywords: tax credit; nursing homes; employee-ownership; impact intvestment (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/npf-2022-0014 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:nonpfo:v:14:y:2023:i:1:p:77-97:n:5

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/npf/html

DOI: 10.1515/npf-2022-0014

Access Statistics for this article

Nonprofit Policy Forum is currently edited by Dennis Young

More articles in Nonprofit Policy Forum from De Gruyter
Bibliographic data for series maintained by Peter Golla ().