Changes in Hospital Performance after Ownership Conversions

Bibliographic Data

ID13774697
AuthorsYu-Chu Shen, Yu‐Chu Shen (0000-0003-1097-0345, Urban Institute, corresponding author)
Year2003
Volume40
Issue3
Pages217-234
Publication date2003-08-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueINQUIRY The Journal of Health Care Organization Provision and Financing (JOURNAL)
Journal identifiersISSN: 0046-9580 • E-ISSN: 1945-7243
PublisherSAGE Publishing (PUBLISHER • US)
DOI10.5034/inquiryjrnl_40.3.217
PMID14680256
OpenAlexW2323228000
LanguageEN
Citations received2
References cited31

This paper examines the effects of ownership conversions on hospital performance between 1987 and 1998 in areas of financial performance, staffing, capacity, and unprofitable care. Conversions to government and for-profit ownership both increased the profit margin: the former due to rising revenue, and the latter due to reduced operating costs and rising revenue. Hospitals that converted to for-profit ownership had the greatest reduction in staffing relative to other converted hospitals. There was little change in bed capacity after conversion to for-profit status, but some reductions in bed capacity after conversion to government or nonprofit status. No conversion of any kind led to a reduced amount of unprofitable care, but conversion to private ownership (nonprofit and for-profit) increased the probability of trauma center closures

Business · Economics · Microeconomics · Net profit · Operating margin · Profit (economics · Profit center · Profit margin · Profitability index · Revenue · Staffing · Finance · Global Health Care Issues · Healthcare Policy and Management · Healthcare Systems and Reforms

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