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Selected Works of Melvin Lamboy-Ruiz
Presentation
Charity Care and Bad Debt Reporting by Nonprofit Hospitals: Examination of Charity Care Thresholds for Tax-Exemption.
2019 AAA Annual Meeting (2019)
  • Melvin A. Lamboy-Ruiz, Georgia Southern University
  • Don Lien, University of Texas at San Antonio
  • Pamela C. Smith, University of Texas at San Antonio
Link
Abstract
Presented at the 2019 AAA Annual Meeting

We examine how the threat of losing income tax-exemption affects nonprofit hospitals’ uncompensated care misreporting behavior when the hospitals (i) are required to provide charity care subject to a minimum threshold in exchange of keeping the tax-exemption, (ii) are partially reimbursed for their bad debts, and (iii) can misrepresent their privately observed information regarding bad debts and charity care provided. Two different regimes of charity care thresholds are evaluated. Our model illustrates that an optimal charity care threshold policy does exist in certain situations. These findings may be used in future research to empirically examine specific hospital and manager behavio
Disciplines
Publication Date
August 12, 2019
Location
San Francisco, CA
Citation Information
Melvin A. Lamboy-Ruiz, Don Lien and Pamela C. Smith. "Charity Care and Bad Debt Reporting by Nonprofit Hospitals: Examination of Charity Care Thresholds for Tax-Exemption." 2019 AAA Annual Meeting (2019)
Available at: http://works.bepress.com/melvin-lamboy-ruiz/11/