Do Patient Perceptions Vary With Ownership Status? A Study of Nonprofit,For-Profit,and Public Hospital Patients

Abstract

Recent research indicates that consumers associate nonprofit organizations mainly with the trait “warmth,” whereas for-profit organizations are perceived as being “competent.” Trustworthiness is another dimension of consumer perceptions of nonprofit organizations. This article attempts to combine two strands of research: Aaker, Vohs, and Mogilner’s research on perceptions of warmth and competence and Handy et al.’s and Schlesinger, Mitchell, and Gray’s research on individuals’ perceptions of trustworthiness in nonprofits. Our study indicates that “warmth,” “trustworthiness,” and “competence” are distinct dimensions of patient perceptions of hospitals. Perceptions of these traits vary across different manifestations of ownership status. Nonprofit hospitals are perceived as more trustworthy and warm but less competent than their for-profit competitors. With nonurgent care, analysis shows that only trustworthiness and competence influence patients’ hospital evaluations. Nonprofit hospitals should try to make their ownership status public as well as to alleviate detrimental deviations of perceived competence from actual competence.