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Hospital financial distress, recovery and closure: Managerial incentives and political costs
The purpose of this study is to examine the association of managerial incentives and political costs with hospital financial distress, recovery or closure. The Medicare Payment Advisory Commission has stated that hospital closures are important for evaluating the distribution of cost, quality and ac...
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| Published in: | Journal of public budgeting, accounting & financial management accounting & financial management, 2011, Vol.23 (1), p.31-68 |
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| Main Authors: | , , , |
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| Language: | English |
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| cites | cdi_FETCH-LOGICAL-c376t-d4fcbc0a0b45da480e059a12c7dff39859bc291c07b77ada3b10f3b9efeeb2273 |
| container_end_page | 68 |
| container_issue | 1 |
| container_start_page | 31 |
| container_title | Journal of public budgeting, accounting & financial management |
| container_volume | 23 |
| creator | Liu, Li-Lin (Sunny) Jervis, Kathryn J Younis, Mustafa (Mike) Z Forgione, Dana A |
| description | The purpose of this study is to examine the association of managerial incentives and political costs with hospital financial distress, recovery or closure. The Medicare Payment Advisory Commission has stated that hospital closures are important for evaluating the distribution of cost, quality and access to healthcare throughout the US. Using Logistic regression, we demonstrate that hospital closure is associated with low occupancy, return on investment, asset turnover, and lack of affiliation with a multihospital system. It is also significantly associated with urban location, teaching programs, high Medicare and Medicaid patient populations, and high debt. Essential access nonprofit hospitals are less likely to close, while this does not affect governmental and for-profit hospitals. Our research hypotheses are supported by these results. |
| doi_str_mv | 10.1108/JPBAFM-23-01-2011-B002 |
| format | article |
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The Medicare Payment Advisory Commission has stated that hospital closures are important for evaluating the distribution of cost, quality and access to healthcare throughout the US. Using Logistic regression, we demonstrate that hospital closure is associated with low occupancy, return on investment, asset turnover, and lack of affiliation with a multihospital system. It is also significantly associated with urban location, teaching programs, high Medicare and Medicaid patient populations, and high debt. Essential access nonprofit hospitals are less likely to close, while this does not affect governmental and for-profit hospitals. 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| fulltext | fulltext |
| identifier | ISSN: 1096-3367 |
| ispartof | Journal of public budgeting, accounting & financial management, 2011, Vol.23 (1), p.31-68 |
| issn | 1096-3367 1945-1814 |
| language | eng |
| recordid | cdi_proquest_journals_863459403 |
| source | ABI/INFORM Global; Emerald:Jisc Collections:Emerald Subject Collections HE and FE 2024-2026:Emerald Premier (reading list); PAIS Index |
| subjects | Accounting Assets Budget Business closings Compensation plans Corporations, Nonprofit Correlation analysis Cost Debt restructuring Financial performance Financial planning Health care access Health care policy Health policy Hospital administration Hospital costs Hospitals Hypotheses Incentives Management decisions Managers Medicaid program Medicare Nonprofit hospitals Nonprofit organizations Patients Payment Politics Profitability Profits Public debts Reimbursement Stockholders Studies United States |
| title | Hospital financial distress, recovery and closure: Managerial incentives and political costs |
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