title: Improving financial performance: a study of 50 hospitals.
abstract: This article provides an analysis of key differences between a small sample of high-performing and low-performing hospitals where performance was defined as return on equity. Some of the more significant findings were: (1) high-performing hospitals achieve their superior performance through cost control rather than higher prices; (2) high-performing hospitals minimize their investment in plant assets and accounts receivable. They are also likely to have a newer plant than low-performing hospitals; (3) high-performing hospitals are not afraid to use debt in their capital structure, but they use significantly less debt than low-performing hospitals; (4) high-performing hospitals have set aside greater reserves for future plant replacement, which helps them to keep their level of debt reasonable and generates significant amounts of investment income; and (5) high-performing hospitals have greater market share than low-performing hospitals.
authors: Ohio State University, Columbus 43201.
authors: W O
authors: WO
authors: Cleverley
mesh_terms: D000067:Accounts Payable and Receivable; D002202:Capital Financing; D003625:Data Collection; D005069:Evaluation Studies as Topic; D005376:Financial Management / Q000592:standards*; D005377:Financial Management, Hospital / Q000592:standards*; D007182:Income / Q000706:statistics & numerical data*; D007449:Investments; D008962:Models, Theoretical; D010934:Planning Techniques; D014481:United States