Do Different Types of Hospitals Act Differently?

The following is based on testimony delivered before the U.S. House of Representatives Committee on Ways and Means on May 26, 2005. Underlying many of the policy questions about the legal treatment of nonprofit hospitals is one basic issue: Do they act the same as for-profit hospitals - and if not, what are the differences and are they big enough to matter? There are good reasons to expect hospitals of different ownership status to act alike. They all share common goals of treating sick people, they all employ large numbers of doctors and nurses, using medical technology; they contract with the same employers and insurance companies, and are subject to the same health care regulations.