| The objective of this study is to perform cost effectiveness analysis on provision of care to vulnerable populations by tax-exempt hospitals in California, regarding amounts foregone due to fiscal benefits.; A thorough literature review preceded the development of the empirical study, providing a solid theoretical foundation for it. Regression analyses were then performed, using TSLE as the estimator, over a panel data (hospital data from 2001 to 2004) built mainly from the California Office of Statewide Health Planning and Development files. 'Care to Vulnerable Populations' and 'Care per Exempt Foregone Dollar' are the dependent variables. Hospital ownership/teaching status, type of care, hospital financial status, market competition, and rate of uninsured people are independent variables.; The findings reveal that public teaching hospitals are more likely to provide care to vulnerable people, controlling for covariates. However, the cost effectiveness analysis reveals that public teaching hospitals are the least effective among all types of tax exempt hospital. Public teaching hospitals shift from the most contributive to the least cost effective type of exempt hospital, taking amounts of dollars foregone by governments on tax exemptions into account. Policy makers may take value from these findings, for the designation of beneficiaries for future donations and on the building of incentive mechanisms. |
