An Analysis of Organizational Structures within Southern Rural Multi-Hospital Systems in the United States

George R. Audi, et al

Abstract


This study examines rural southern hospitals that are part of a multi-hospital system. Using AHA data, three financial variables: cash-on-hand, operating margin, and return on equity serve as dependent variables in the analysis of covariance models. The treatment variable is the profit/non-profit status of the hospital and the covariate is the size of the hospital, as measured by the number of hospital beds. Results indicate that for-profit hospitals, on average, keep 27.26 fewer days of cash on hand than non-profit hospitals. Operating margins and return on equity are larger in for-profit than in for non-profit hospitals, an average difference of 5.6% and 8.36% respectively.


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References


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