A population ecology study of hospital closures in Florida between 1965 and 1995

The population ecology literature argues that, at the macro level, organizations experience various liabilities to their continued survival. This study examined the effect of size, age, and niche density on the closure of acute care hospitals in Florida between 1965 and 1995. The data for the study were created using information about Florida hospitals found in the annual reports of the American Hospital Association (n = 427). Using the technique of survival analysis, it was found that newer hospitals and hospitals originally established in organizationally dense areas (five or more hospitals within a five-mile radius) experienced a significantly greater incidence of closure than did those that were older or founded in less dense areas. Small hospitals (<100 beds) were also shown to be significantly more likely to close than large ones (>300 beds) as were hospitals located in organizationally dense areas (>five hospitals in a five-mile radius). The study concludes with an examination of the policy and management implications of the results.