title: Association between payer mix and costs, revenues and profitability: a cross-sectional study of Lebanese hospitals.
abstract: This study aimed to examine the association between the payer mix and the financial performance of public and private hospitals in Lebanon. The sample comprised 24 hospitals, representing the variety of hospital characteristics in Lebanon. The distribution of the payer mix revealed that the main sources of revenue were public sources (61.1%), out-of-pocket (18.4%) and private insurance (18.2%). Increases in the percentage of revenue from public sources were associated with lower total costs and revenues, but not profit margins. An inverse association was noted between increased revenue from private insurance and profitability, attributed to increased costs. Increased percentage of out of- pocket payments was associated with lower costs and higher profitability. The study provides evidence that payer mix is associated with hospital costs, revenues and profitability. This should initiate/inform discussions between public and private payers and hospitals about the level of payment and its association with hospital sector financial viability.
authors.affiliation: Department of Health Management and Policy, Faculty of Health Sciences, American University of Beirut, Beirut, Lebanon.
authors.forename: S
authors.initials: S
authors.lastname: Saleh
authors.affiliation: Ministry of Public Health, Beirut, Lebanon.
authors.forename: W
authors.initials: W
authors.lastname: Ammar
authors.affiliation: Department of Health Management and Policy, Faculty of Health Sciences, American University of Beirut, Beirut, Lebanon.
authors.forename: N
authors.initials: N
authors.lastname: Natafgi
authors.affiliation: Department of Health Management and Policy, Faculty of Health Sciences, American University of Beirut, Beirut, Lebanon.
authors.forename: Y
authors.initials: Y
authors.lastname: Mourad
authors.affiliation: School of Pharmacy, Lebanese American University, Byblos, Lebanon.
authors.forename: H
authors.initials: H
authors.lastname: Dimassi
authors.affiliation: Ministry of Public Health, Beirut, Lebanon.
authors.forename: H
authors.initials: H
authors.lastname: Harb
mesh_terms: D003430:Cross-Sectional Studies; D004469:Economics, Hospital / Q000706:statistics & numerical data*; D005377:Financial Management, Hospital / Q000706:statistics & numerical data*; D017721:Hospital Costs; D006801:Humans; D007182:Income / Q000706:statistics & numerical data; D007348:Insurance, Health / Q000191:economics* / Q000706:statistics & numerical data; D007861:Lebanon; D017057:Medically Uninsured / Q000706:statistics & numerical data; D018803:Models, Economic