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Health care industry

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Consequences of hospital financial distress

Article Abstract:

A survey of 340 financially distressed hospitals from the period 1983-85 reveals that 91.2% of them continued to operate by the end of 1990. The survey results indicate that financially distressed hospitals had a remarkable resiliency that helped them survive. The main factor for survival seemed to be a lower level of competition in the hospital's health care market. Financially distressed hospitals were less likely to acquire other hospitals and more likely to divest themselves of assets.

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Differences in characteristics of hospitals with sustained high and sustained low profitability

Article Abstract:

A study of 140 hospitals in Florida found that about 15%-20% were found to be either high-profit or low-profit between 1990 and 1992 based on pretax operating margins (PTOM) and pretax return on assets measures (PROA). The PROA high-profit group showed a greater Medicare mix and a greater case-mix index. The high-profit group also had higher productivity and lower adjusted average lengths of stay.

Health care industry, Florida

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A comparative analysis of revenue and cost-management strategies of not-for-profit and for-profit hospitals

Article Abstract:

A study comparing economic performances of for-profit (FP) and not-for-profit (NFP) hospitals attributes the higher profits at FPs largely to revenue management. The two groups were equally efficient and had no significant differences in occupancy levels, case-mix adjusted ALOS, and paid hours per case-mix adjusted admissions.

Hospital administrators

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