Document Type

Article

Media Type

Text

Abstract

This research examines whether for-profit status or system membership is significantly related to the financial performance of hospitals. Panel data containing 573 observations of Florida hospitals for 1984 through 1987 are used in a fixed-effects regression model. The results indicate that it is system membership rather than forprofit status that is significantly related to better financial performance. For-profit status is unrelated to overall financial performance. System hospitals have higher revenues per admission, but not higher expenditures per admission than independent hospitals. The findings are consistent with the hypothesis that expanding hospital systems target locations and services that are potentially profitable.

DOI

10.1080/00036840110044180

Publication Date

1-1-2002

Comments

The author is grateful to J. Rubin and L. Russell for comments and Lisa Parochniak for research assistance.

Department

Department of Economics

Sponsorship

Support from the Rutgers University Research Council and NIMH Grant No. 43450-01 is gratefully acknowledged.

Language

eng

Publisher

Taylor & Francis

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