Why Are Not-For-Profit Hospitals in the US So Much More Profitable Than For-Profit Hospitals?

Christopher Mouré and Shai Gorsky

EconStor Preprints from ZBW - Leibniz Information Centre for Economics

Abstract: When it comes to social institutions, not-for-profit organizations (NFPs) allegedly strike a balance between the private and public realm. While privately owned and operated, not-for-profits are distinguished by their ostensibly public purpose – in eschewing private profits, they claim to make the pursuit of some social benefit their primary objective. However, not all not-for-profits are equal. While most make little or no revenue, let alone net income, some NFPs collect billions in revenue and hundreds of millions in net income.

Keywords: differential accumulation; hospitals; profits; United States (search for similar items in EconPapers)
JEL-codes: I1 P1 (search for similar items in EconPapers)
Date: 2023
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