Jove
Visualize
Contact Us
JoVE
x logofacebook logolinkedin logoyoutube logo
ABOUT JoVE
OverviewLeadershipBlogJoVE Help Center
AUTHORS
Publishing ProcessEditorial BoardScope & PoliciesPeer ReviewFAQSubmit
LIBRARIANS
TestimonialsSubscriptionsAccessResourcesLibrary Advisory BoardFAQ
RESEARCH
JoVE JournalMethods CollectionsJoVE Encyclopedia of ExperimentsArchive
EDUCATION
JoVE CoreJoVE BusinessJoVE Science EducationJoVE Lab ManualFaculty Resource CenterFaculty Site
Terms & Conditions of Use
Privacy Policy
Policies

Related Experiment Videos

Hospital profitability and capital structure: a comparative analysis.

J Valvona1, F A Sloan

  • 1Medical Center Planning and Analysis Department, Vanderbilt University, Nashville, TN 37235.

Health Services Research
|August 1, 1988
PubMed
Summary

Investor-owned hospitals show higher profit margins and return on equity (ROE) than other hospital types. However, their stock returns, initially high, declined significantly after 1983.

Related Concept Videos

You might also read

Related Articles

Articles linked to this work by shared authors, journal, and citation graph.

Sort by
Same author

Diabetes, Edentulism, and Cognitive Decline: A 12-Year Prospective Analysis.

Journal of dental research·2023
Same author

Mothers and fathers in the criminal justice system and children's child protective services involvement.

Child abuse & neglect·2020
Same author

Heavy drinking in early adulthood and outcomes at mid life.

Journal of epidemiology and community health·2010
Same author

Impacts of the Master Settlement Agreement on the tobacco industry.

Tobacco control·2004
Same author

Formation of trusts and spend down to Medicaid.

The journals of gerontology. Series B, Psychological sciences and social sciences·2002
Same author

Effects of Tennessee Medicaid managed care on obstetrical care and birth outcomes.

Journal of health politics, policy and law·2002

Area of Science:

  • Healthcare Management
  • Financial Analysis
  • Health Economics

Background:

  • Hospital financial performance varies significantly by ownership structure.
  • Assessing the financial health of investor-owned hospitals is crucial for understanding healthcare market dynamics.

Purpose of the Study:

  • To compare the financial performance of hospitals based on ownership type.
  • To evaluate the stock returns of publicly traded hospital companies against other industries.
  • To analyze the financing strategies (debt vs. equity) of different hospital ownership types.

Main Methods:

  • Analysis of financial indicators such as profit margins, return on equity (ROE), and debt-to-equity ratios.
  • Comparison of stock returns for five publicly traded hospital companies with other industries over specific periods.

Related Experiment Videos

  • Examination of debt and equity utilization in new hospital financing.

    • Main Results:

    • Investor-owned hospitals demonstrated superior profit margins and ROE compared to government and voluntary hospitals.
    • Between 1972 and 1983, selected hospital companies yielded stock returns more than double those of other industries.
    • Post-1983, the stock returns for these hospital companies experienced a substantial decrease, both absolutely and relative to other sectors.
    • Investor-owned hospitals exhibited higher leverage (debt-to-equity ratios) than other hospital types and other industries.

    Conclusions:

    • Investor-owned hospital models initially offered significant financial advantages, including higher profitability and investor returns.
    • The financial performance of investor-owned hospitals is subject to market fluctuations and industry-specific trends, as evidenced by the post-1983 decline.
    • Higher leverage in investor-owned hospitals suggests a greater reliance on debt financing compared to other ownership structures.