Factor analysis of financial and operational performance measures of non-profit hospitals.
OBJECTIVE
To understand the important dimensions of the financial and operational performance of non-profit hospitals.


METHODS
Secondary data for non-profit US hospitals between 1996 and 2004.


METHODS
I use iterative principal factor analysis of hospitals' financial and operational ratios for each year of the study. For factor interpretation, I use oblique rotation.


METHODS
Financial ratios were created using cost report data from HCRIS 2552-96 available from the Centers for Medicaid & Medicare Services (CMS).


RESULTS
I identify five factors--capital structure, profitability, activity, liquidity, and an operational factor--that explain most of the variation in the performance of non-profit hospitals. I also find that capital structure is more important than profitability in determining the performance of these hospitals.


CONCLUSIONS
The importance of capital structure highlights a significant shift in the organization of the non-profit hospitals' finances.
Das
Dhiman
D
Brookdale Center for Healthy Aging & Longevity of Hunter College, The City University of New York, USA. Dhiman.Das@hunter.cuny.edu
D004469:Economics, Hospital; D005163:Factor Analysis, Statistical; D005377:Financial Management, Hospital / Q000191:economics* / Q000458:organization & administration; D006788:Hospitals, Voluntary / Q000191:economics* / Q000458:organization & administration; D006801:Humans; D008330:Management Audit / Q000191:economics; D014481:United States