Determinants of capital structure.
This study analyzes the determinants of hospital capital structure in a new market setting that are created by the financial pressures of prospective payment and the intense price competition among hospitals. Using California data, the study found hospital system affiliation, bed size, growth rate in revenues, operating risk, and asset structure affected both short- and long-term debt borrowings. In addition, percentage of uncompensated care, profitability, and payer mix influenced short-term borrowings while market conditions and ownership affected long-term borrowings. Most significant of all is the finding that smaller hospitals tend to borrow more, possibly because they cannot generate funds internally.
School of Allied Health Professions, Virginia Commonwealth University, Richmond 23298.
M J
MJ
McCue
Y A
YA
Ozcan
D002140:California; D002202:Capital Financing / Q000379:methods / Q000706:statistics & numerical data*; D003659:Decision Making, Organizational; D004465:Economic Competition; D005377:Financial Management, Hospital / Q000379:methods / Q000706:statistics & numerical data*; D006302:Health Services Research; D006742:Hospital Bed Capacity / Q000706:statistics & numerical data; D015233:Models, Statistical; D015999:Multivariate Analysis; D010067:Ownership / Q000706:statistics & numerical data; D011445:Prospective Payment System; D012959:Socioeconomic Factors