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Does non-profit commercialization help reduce social inequality? Revisiting the cross-subsidization hypothesis

Authors
Park, Young JooLu, JiahuanShon, Jongmin
Issue Date
Dec-2022
Publisher
Taylor & Francis
Keywords
Non-Profit commercialization; commercial revenue; cross-subsidization; social equity
Citation
Public Management Review, v.24, no.12, pp.1957 - 1979
Journal Title
Public Management Review
Volume
24
Number
12
Start Page
1957
End Page
1979
URI
http://scholarworks.bwise.kr/ssu/handle/2018.sw.ssu/42752
DOI
10.1080/14719037.2021.1945668
ISSN
1471-9037
Abstract
The non-profit sector has a long history of serving vulnerable people and promoting social equity. The growing reliance on commercial income in the non-profit sector has aroused wide concern about mission drift and the loss of identity. The cross-subsidization hypothesis is often used to justify non-profit commercialization, but this hypothesis has not been subject to many empirical tests. This study examines how non-profit hospitals' commercial income affects their provision of community benefits. The results indicate that hospitals with more commercial income provide less unprofitable programmes to serve disadvantaged groups and reduce health disparities.
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