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Factors influencing high and low profitability among hospitals
W B Vogel1, B Langland-Orban, L C Gapenski
1Department of Health Services Administration, University of Florida, Gainesville.
Abstract:
This article examines the determinants of exceptionally high and exceptionally low profitability among hospitals. Using 1989 data from a sample of 169 acute care hospitals in Florida, it reveals that debt load, labor intensity, and Medicare mix play important roles in exceptional profitability. Administrators can therefore take selected actions over the long run to alter their hospital's chance of exhibiting exceptionally high or exceptionally low profitability.
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