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Occasional Paper

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Like most non-profit hospitals, those of Massachusetts are facing serious financial challenges. While the immediate issue is the shortfall between revenues and expenses, the paper finds that their real problems are structural, evidenced by at least three systemic impediments -uncompensated care, over-utilization of teaching hospitals, and an increasingly unattractive environment for the practice of medicine. Other states whose non-profit hospitals face persistent financial difficulties may find it useful to consider whether structural impediments of the type facing Massachusetts undermine the operating performance of their own institutions.


Working Paper #1003

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