Antecedents of Hospital Ownership Conversions, Mergers, and Closures (original) (raw)

This study investigates the determinants behind hospital ownership conversions, mergers, and closures in the U.S. between 1986 and 1996. Key findings indicate that low profit margins and high debt-to-asset ratios often precede ownership conversions to for-profit status, while for-profit hospitals tend to convert to nonprofit in response to declining margins. Additionally, mergers primarily aim to enhance market power, unlike ownership conversions which are significantly influenced by financial distress. The ongoing shifts in hospital ownership reflect broader trends in competition and payment practices within the healthcare industry.