Ohio University

Ohio University awarded national grant to study community-benefit investments made by for-profit healthcare organizations

Ohio University awarded national grant to study community-benefit investments made by for-profit healthcare organizations

Athens, Ohio (Dec. 16, 2019) — Ohio University’s Cory Cronin and Berkeley Franz have been awarded a Robert Wood Johnson Foundation grant to study the community benefit efforts conducted by for-profit hospitals in the United States.

The national grant, titled “Understanding For-Profit Hospitals as Community Anchors: Does a Corporate Mission Detract from a Social Responsibility to Contribute to Community Health,” was awarded in the amount of $237,966 over a period of 18 months. The Robert Wood Johnson Foundation (RWJF) is the largest foundation dedicated solely to health in the United States.

Both Cronin, an assistant professor in the College of Health Sciences and Professions and Franz, an assistant professor in the Heritage College of Osteopathic Medicine, will serve as co-principal investigators on the project. Franz is also holder of the Heritage Career Development Faculty Endowed Fellowship in Population Health Science, Osteopathic Heritage Foundation Ralph S. Licklider, DO, Endowment.

Cronin explained that 2008 brought a change that allowed non-profit hospitals to report a wider range of activities and events to the IRS, including health fairs, free clinics, flu shot drives and more, as mandated community benefits. The change created an opportunity for increased exploration from the academic population into these community benefits. Congress became interested as well, and some expressed concern for non-profit health organizations earning large revenues.

Although non-profit hospitals are required to report community benefits, for-profit hospitals are not obligated to do so. This means that for-profit hospitals, along with other for-profit businesses, have been understudied in terms of whether they act as “anchors” improving the health of communities around them. This gap in knowledge prompted the Robert Wood Johnson Foundation to place a call for proposals specifically seeking information into how for-profit organizations support their communities.

“Because non-profit organizations are required to release this information to the IRS, there is publicly available information. For-profits don’t have to do this so there is no comparison,” said Cronin. “They would have to self-report for our project and we’re hoping that they’ll want to do that because we do believe they’re doing community benefit and would want to report it.”

One question Cronin and Franz have is whether for-profit hospital stockholders and owners would approve of using organizational resources to improve community health which, in theory, could lower dividends or the value of the organization.

Franz also noted that for-profit hospitals often contribute large tax bases to host cities and are usually a major driver of the economics of a community.

“Our project is developing a way to survey for-profit hospitals and understand what they’re doing so researchers can look at this and policymakers can compare the contributions they’re making,” said Franz. “We’re looking at their involvement in health promotion, teaching proper diet and exercise all the way up to big, social interventions like getting safe housing or improving employment opportunities and long-term investments into communities.”

The first phase of the study will focus on identifying communities that exhibit specific characteristics, including those in which only for-profit hospitals are available and areas in which both for-profit and non-profit entities are competing in the same market. Cronin and Franz also noted that they will work to identify a non-profit health organization that transitioned to a for-profit health organization. Individuals within each community will be interviewed to determine their impressions of hospital outreach to improve community health in their area. 

With more than 6,000 hospitals in the country and about 20 percent of those being for-profit, Cronin and Franz ultimately hope to create more available data by talking to healthcare leaders and studying why for-profit hospitals might tend to choose certain markets. 

“We’re hoping to construct a survey that would give us comparable data, get public data from a non-profit and look right next to it for a for-profit to see if it’s on par or if significant differences are apparent,” Cronin said.

Cronin and Franz are searching for five or six communities to build a model that may eventually be applicable on a national scale.

“I think we’re going to contribute to this larger field of understanding what institutions offer to their surrounding communities. This is a big part of urban sociology, trying to understand what the benefit is of having big employers or organizations in a community,” Franz added. “I think we’re going to add to that by talking about for-profit hospitals, and we’ll make that data available so we can understand what’s happening and also encourage more hospitals to do more of this work that we know is important in terms of improving health disparities and population health.”

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Support for this research was provided, in part, by the Robert Wood Johnson Foundation. The views expressed here do not necessarily reflect the views of the Foundation.

Photos Available: Berkeley Franz and Cory Cronin.

Media Contact: Associate Director of Communications Dan Pittman at pittmand@ohio.edu or 740.566.0212.

About the College of Health Sciences and Professions
Ohio University’s College of Health Sciences and Professions (CHSP) is a place where innovative education and research happen every day. Each year, more than 3,600 students graduate from our Athens and Dublin-based campuses prepared to serve as passionate professionals who are ready to change the world. As one of the largest health-focused colleges in the country, CHSP has a growing portfolio of degree and certificate programs housed in six academic units: the School of Applied Health Sciences and Wellness; the School of Nursing; the School of Rehabilitation and Communication Sciences; the Department of Social and Public Health; the Department of Social Work and the Department of Interdisciplinary Health Studies. All six connect faculty and students across multiple disciplines to explore the best approaches to addressing health and wellness in various settings. Find out more at: www.ohio.edu/chsp.

About the Heritage College of Osteopathic Medicine
The Ohio University Heritage College of Osteopathic Medicine is a leader in training dedicated primary care physicians who are prepared to address the most pervasive medical needs in the state and the nation. Approximately 50 percent of Heritage College alumni practice in primary care and nearly 60 percent practice in Ohio. CARE LEADS HERE. Visit www.ohio.edu/medicine for more information.

About Ohio University
Ohio University strives to be the best student-centered, transformative learning community in America, where students realize their promise, faculty advance knowledge, staff achieve excellence, and alumni become global leaders. OHIO is committed to fostering, embracing, and celebrating diversity in all its forms. Our Athens Campus offers students a residential learning experience in one of the nation’s most picturesque academic settings. Additional campuses and centers serve students across the state, and online programs further advance the University’s commitment to providing educational access and opportunity. Visit www.ohio.edu for more information.