Soft budget constraints and ownership: Empirical evidence from US hospitals

Consistent with the property rights theory of ownership incorporating soft budget constraints (SBCs), we find that controlling for SBCs, for-profit hospitals drop safety-net services more often and exhibit higher mortality rates, suggesting aggressive cost control that damages non-contractible quality.

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Year of publication:	2011
Authors:	Eggleston, Karen ; Shen, Yu-Chu
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 110.2011, 1, p. 7-11
Publisher:	Elsevier
Keywords:	Soft budget constraints Ownership Health care For-profit Hospital quality

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008867017