Giving tax money to non-profit hospitals might not save a single life, while the same money for public hospitals saves thousands.
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.
The Rise of the Modern Hospital and Early-Life Health: Evidence from the Hill-Burton Act
SSRN · 6456962
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