Operating Characteristics and Comparative Performance of Investor-Owned Multihospital Systems

In 1990, investor-owned multihospital systems (IOMS) owned and operated 1,134 hospitals in the US. Data for the 3 largest IOMSs in Florida - American Medical International Inc., Hospital Corp. of America Inc., and Humana Inc. - are analyzed for the years 1982-1989. The results indicate that IOMSs do...

Full description

Saved in:
Bibliographic Details
Published inJournal of healthcare management Vol. 37; no. 3; p. 403
Main Author Sear, Alan M
Format Journal Article
LanguageEnglish
Published Chicago Lippincott Williams & Wilkins Ovid Technologies 01.10.1992
Subjects
Characteristics
Comparative analysis
Data envelopment analysis
Efficiency
Hospital systems
Hospitals
Labor costs
Nonprofit hospitals
Profit margins
Profitability
Profits
Regression analysis
Studies
Variables
Working hours
United States > US
Online AccessGet full text

Cover

More Information
Summary:In 1990, investor-owned multihospital systems (IOMS) owned and operated 1,134 hospitals in the US. Data for the 3 largest IOMSs in Florida - American Medical International Inc., Hospital Corp. of America Inc., and Humana Inc. - are analyzed for the years 1982-1989. The results indicate that IOMSs do not differ significantly from one another on measures of efficiency, bed size, length of stay, or case mix. To the extent that there were differences among the IOMSs on the measures at the beginning of the period, they tended to narrow by the end. The regression results reveal that structural variables, such as average length of stay and case mix, are more important in explaining investor-owned hospital operating margins than are some labor efficiency measures, such as work hours per adjusted patient day. Hospitals with high percentages of Medicare or other prospective payment sources must manage length of stay effectively if they intend to maximize operating margins.
ISSN:1096-9012
1944-7396