Government

Rural Hospital Ownership: Medical Service Provision, Market Mix, And Spillover Effects

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Executive Summary

Roughly one half of hospitals in the U.S. are in rural areas, yet researchers have largely studied the effects of hospital ownership in the urban context. The authors examine differences in the provision of profitable and unprofitable medical services in rural areas across nonprofit, for-profit, and government hospitals. They also consider the effect of hospital ownership mix within rural hospital markets. They find that rural nonprofit hospitals are more likely than for-profit hospitals to offer unprofitable services, many of which are underprovided services.

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