Giving tax money to non-profit hospitals might not save a single life, while the same money for public hospitals saves thousands.
March 25, 2026
Original Paper
The Rise of the Modern Hospital and Early-Life Health: Evidence from the Hill-Burton Act
SSRN · 6456962
The Takeaway
A study of the massive US hospital expansion in the 1950s found that federal grants for public hospitals significantly cut infant mortality. However, the same money given to private non-profits had no measurable impact on health, suggesting that ownership structure is more important than the total number of hospital beds.
From the abstract
The U.S. hospital sector expanded rapidly in the 1950s and 1960s, largely due to construction subsidies provided under federal legislation known as the Hill-Burton Act. This paper examines the impact of Hill-Burton grants on maternity care access and infant health. We find that grants for public hospitals significantly reduced out-of-hospital births and infant mortality, particularly among non-white populations. In contrast, grants for private non-profit hospitals had no measurable effects on ou