In an earlier study of our own (Haddock, Arrington, and Skelton
1989), we did empirically evaluate the methodological criticisms and
recommended remedial modifications to Herzlinger and Krasker's
model. Using Herzlinger and Krasker's original model and the remedially
modified models, the current article empirically reviews the original
conclusions using similar pre-PPS (1982) data. We also are
currently preparing a final study that will evaluate the same issues
using 1986 data to address whether observed differences in for-profit
and not-for-profit performance remain or not in the post-PPS era.