Publications [#238921] of Frank A. Sloan

Journal Articles

1. Picone, G; Chou, SY; Sloan, F, Are for-profit hospital conversions harmful to patients and to Medicare?, RAND Journal of Economics, vol. 33 no. 3 (2002), pp. 507-523 [repository], [doi]
   (last updated on 2024/04/19)

   Abstract:
   We examine how changes in hospital ownership to and from for-profit status affect quality and Medicare payments per hospital stay. We hypothesize that hospitals converting to for-profit ownership boost postacquisition profitability by reducing dimensions of quality not readily observed by patients and by raising prices. We find that 1-2 years after conversion to for-profit status, mortality of patients, which is difficult for outsiders to monitor, increases while hospital profitability rises markedly and staffing decreases. Thereafter, the decline in quality is much lower. A similar decline in quality is not observed after hospitals switch from for-profit to government or private nonprofit status.