Dhiman Das1. 1. Brookdale Center for Healthy Aging & Longevity of Hunter College, The City University of New York, USA. Dhiman.Das@hunter.cuny.edu
Abstract
OBJECTIVE: To understand the important dimensions of the financial and operational performance of non-profit hospitals. DATA SOURCE: Secondary data for non-profit US hospitals between 1996 and 2004. STUDY DESIGN: I use iterative principal factor analysis of hospitals' financial and operational ratios for each year of the study. For factor interpretation, I use oblique rotation. DATA COLLECTION/EXTRACTION METHODS: Financial ratios were created using cost report data from HCRIS 2552-96 available from the Centers for Medicaid & Medicare Services (CMS). PRINCIPAL FINDING: I identify five factors--capital structure, profitability, activity, liquidity, and an operational factor--that explain most of the variation in the performance of non-profit hospitals. I also find that capital structure is more important than profitability in determining the performance of these hospitals. CONCLUSION: The importance of capital structure highlights a significant shift in the organization of the non-profit hospitals' finances.
OBJECTIVE: To understand the important dimensions of the financial and operational performance of non-profit hospitals. DATA SOURCE: Secondary data for non-profit US hospitals between 1996 and 2004. STUDY DESIGN: I use iterative principal factor analysis of hospitals' financial and operational ratios for each year of the study. For factor interpretation, I use oblique rotation. DATA COLLECTION/EXTRACTION METHODS: Financial ratios were created using cost report data from HCRIS 2552-96 available from the Centers for Medicaid & Medicare Services (CMS). PRINCIPAL FINDING: I identify five factors--capital structure, profitability, activity, liquidity, and an operational factor--that explain most of the variation in the performance of non-profit hospitals. I also find that capital structure is more important than profitability in determining the performance of these hospitals. CONCLUSION: The importance of capital structure highlights a significant shift in the organization of the non-profit hospitals' finances.