Chakravarty, Sujoy; Gaynor, Martin; Klepper, Stephen; … - 2005
We examine the evolving structure of the U.S. hospital industry since 1970, focusing on how ownership form influences … entry and exit behavior. We develop theoretical predictions based on the model of Lakdawalla and Philipson, in which for-profit … and not-for-profit hospitals differ regarding their objectives and costs of capital. The model predicts for-profits would …