title: For-profit chains seek to acquire successful not-for-profit hospitals.
abstract: Over the last decade, investor-owned hospital corporations have grown primarily by acquiring other for-profit hospital chains or stand-alone for-profit institutions. Between 1990 and 1995, however, these corporations also acquired nearly 50 not-for-profit hospitals and converted them to for-profit status. An examination of the long-term financial condition of 39 not-for-profit hospitals acquired by various investor-owned hospital corporations between 1992 and 1996 was conducted using free-cash-flow accounting valuation. The results suggest that, initially, only not-for-profit hospitals in dire financial straits were candidates for acquisition and conversion to for-profit status. More recent acquisitions increasingly have involved more successful not-for-profit hospitals.
authors.affiliation: Southern Connecticut State University, New Haven, USA.
authors.forename: J F
authors.initials: JF
authors.lastname: Phillips
mesh_terms: D000067:Accounts Payable and Receivable; D005375:Financial Audit; D005377:Financial Management, Hospital / Q000639:trends*; D006273:Health Facility Merger; D006777:Hospitals, Proprietary / Q000191:economics* / Q000458:organization & administration; D006788:Hospitals, Voluntary / Q000191:economics*; D008137:Longitudinal Studies; D009096:Multi-Institutional Systems / Q000191:economics*; D014481:United States