Are not-for-profits different? Theory and evidence on the pricing of health services in Uganda
Number of Authors: 2
2016 (English)In: Economics of Governance, ISSN 1435-6104, E-ISSN 1435-8131, Vol. 17, no 1, 1-10 p.Article in journal (Refereed) Published
Public provision of health and education in developing countries is often insufficient and inefficient. There is thus a call for a greater involvement of private providers to supply affordable and high-quality services to the population. In particular, it is often suggested that not-for-profit institutions should play a larger role, given their social mission. But do not-for-profits really behave differently from for-profit institutions? The literature does not provide a clear answer to this question. The present contribution offers evidence based on a simple theoretical model and price data from health care providers in Uganda with different governance structures. Using differences in market structure as source of variation, we find that not-for-profits indeed behave differently from for-profit institutions, with a pricing behavior that is consistent with an emphasis on health impact and not just profit maximization. Our results thus provide an argument for a policy trying to attract not-for-profit health clinics to fill the gap of an inefficient public health provision.
Place, publisher, year, edition, pages
2016. Vol. 17, no 1, 1-10 p.
Health care, Developing country, Not-for-profit, For-profit, Competition, Prices
Economics and Business
IdentifiersURN: urn:nbn:se:su:diva-130987DOI: 10.1007/s10101-015-0164-yISI: 000374667000001OAI: oai:DiVA.org:su-130987DiVA: diva2:936176