Different Strokes for Different Markets

October 17th, 2008 | Market Approach | Medicare | Seminars & Publications

The Government Accountability Office (GAO) just released a study done at the request of Senator Grassley on differences in the manner in which tax exempt hospitals record the "community benefit" they provide. http://www.gao.gov/products/GAO-08-880

Notably, the GAO found many of the same geographic disparities in the location of taxable and tax–exempt hospitals that I identified in my article researched last Winter and just published in the current edition of Business Valuation Review: Healthcare Market Structure and Its Implication for Valuation of Privately Held Provider Entities: An Empirical Analysis. This can be seen visually in the map on page 9 of the GAO report. Unlike the GAO (!) my article identifies the underlying historical and economic reasons for the location of taxable and tax-exempt healthcare providers, which I consider an important factor for policymakers to consider.

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