Differences between Non-Profits and For-Profits in the Hospice Industry : Patient Selection and Quality

This research compares the behavior of non-profit organizations and private for-profit firms under strong incentives from a government program. Specifically, I study the hospice industry, where there are financial incentives created by the Medicare benefit. After controlling for a number of relevant factors, the results suggest that for-profit hospices differentially take advantage of these incentives. I find evidence of patient selection via referral networks, differences in staff mix, and lower levels of quality in for-profit hospices