The effects of ownership and system affiliation on the economic performance of hospitals.

S. C. Renn, C. J. Schramm, J. M. Watt, R. A. Derzon

Research output: Contribution to journalArticlepeer-review

62 Scopus citations

Abstract

We investigated differences among five types of hospitals, defined by ownership (investor-owned or not-for-profit), system affiliation (system-affiliated or freestanding), and government sponsorship on 24 measures of economic performance. Using multivariate analysis of 1980 Medicare cost report and other data from a national sample of 561 hospitals, we found that investor-owned chain hospitals charged significantly more, and were more profitable, than all other types of hospitals except freestanding for-profits; there were no differences in productive efficiency that could be attributed to ownership or affiliation; the investor-owned hospitals had higher debt-to-asset ratios, less-capital-intensive plants, and greater capital costs as a percentage of operating costs than the not-for-profits; and there were no consistent case-mix differences among the hospitals.

Original languageEnglish (US)
Pages (from-to)219-236
Number of pages18
JournalInquiry
Volume22
Issue number3
StatePublished - Sep 1985
Externally publishedYes

ASJC Scopus subject areas

  • Health Policy

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