Operating characteristics and comparative performance of investor-owned multihospital systems

Investor-owned multihospital systems (IOMS's) have grown in number and influence in the United States in recent years, but very little is known about their comparative characteristics and performance. Since 1982 all hospitals in Florida have been required to submit standardized financial and operating data to the Health Care Cost Containment Board. This study analyzes data for the three largest IOMS's in Florida (American Medical International, Hospital Corporation of America, and Humana) for the years 1982-1989. Efficiency ratios, operating characteristics, and operating margins were compared. A multiple regression analysis was performed to determine the amount of variance in operating margins, which was explained by the efficiency measures and operating characteristics.