Many have speculated that the quality of dialysis care differs for patients
treated in for-profit and not-for-profit facilities. In 1999 we published
a study that demonstrated poorer survival and lower rates of listing for re
nal transplant for patients in for-profit rather than not-for-profit, frees
tanding centers. While these findings generated substantial discussion, few
have commented on their implications. In this article we first discuss pot
ential sources of bias that could impact on the study's results and place t
he findings in context. We conclude that these disparities are likely to be
real, as they are consistent with theorized differences between for-profit
and not-for-profit health care organizations and with other evaluations of
dialysis facility ownership. We then discuss several policy options for ad
dressing the quality differences we identified. Reducing the outcome discre
pancies will not be easy. Upon considering several policy alternatives, we
conclude that a widespread effort to link processes of dialysis care to pat
ient outcomes is best suited to reduce the quality differences between for-
profit and not-for-profit dialysis units and improve outcomes in both types
of facilities.