A comparison of the performance of for-profit and nonprofit U.S. psychiatric inpatient care providers since 1980

Psychiatr Serv. 2003 Feb;54(2):183-7. doi: 10.1176/appi.ps.54.2.183.

Abstract

Objective: The authors synthesized evidence from a systematic review of the literature reporting substantiated performance differences between private for-profit and private nonprofit psychiatric inpatient care providers in the United States since 1980. They also compared reported differences in performance between nonprofit and for-profit inpatient psychiatric care providers with reported differences between nonprofit and for-profit providers of other types of health care.

Methods: Studies were located by means of computerized bibliographic searches and follow-up searches of studies cited in the articles located in the computerized search. The analysis included peer-reviewed studies that compared the performance of for-profit and nonprofit health service providers, including inpatient psychiatric services, in the areas of access, quality, cost-efficiency, and amount of charity care on the basis of quantitative data collected after 1980. The studies were classified in one of three categories according to the study conclusion: for-profit superiority, nonprofit superiority, or no difference or mixed results.

Results: Almost all studies (with one exception) found that the nonprofit psychiatric providers performed as well as or better than their for-profit counterparts. The proportion of studies reporting performance superiority of nonprofit versus for-profit psychiatric inpatient providers was greater than the proportion of studies reporting the same conclusion for providers of all other types of health care taken together.

Conclusions: On the basis of data collected since 1980, nonprofit psychiatric inpatient care providers in the United States had superior performance on access, quality, cost-efficiency, and amount of charity care, compared with for-profit providers. Caution is warranted in pursuing public policies that permit or encourage the replacement of nonprofit psychiatric inpatient care providers with for-profit providers of these services.

Publication types

  • Comparative Study
  • Research Support, Non-U.S. Gov't
  • Review
  • Systematic Review

MeSH terms

  • Cost-Benefit Analysis
  • Health Services Accessibility
  • Health Services Research
  • Hospitals, Proprietary / organization & administration*
  • Hospitals, Proprietary / standards
  • Hospitals, Psychiatric / classification
  • Hospitals, Psychiatric / organization & administration*
  • Hospitals, Voluntary / organization & administration*
  • Hospitals, Voluntary / standards
  • Humans
  • Management Audit*
  • Mental Disorders / rehabilitation*
  • Ownership
  • Psychiatric Department, Hospital / classification
  • Psychiatric Department, Hospital / organization & administration*
  • Quality of Health Care
  • Uncompensated Care
  • United States