Examining the Relationship between Community Orientation and Hospital Financial Performance

A community orientation strategy may be a socially responsible way for hospitals to simultaneously improve financial performance and community health, in accordance with the Affordable Care Act. Using data from the AHA Annual Survey, AHRF, and CMS Cost Reports, this study examined the association be...

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Bibliographic Details
Published inJournal of organizational psychology Vol. 17; no. 2; p. 50
Main Authors Jennings, J'Aime C, Landry, Amy Y, Hearld, Larry R, Snyder, Scott W, Weech-Maldonado, Robert, Patrician, Patricia A
Format Journal Article
LanguageEnglish
Published West Palm Beach North American Business Press 01.06.2017
Subjects
Costs
Expatriate employees
Financial performance
Health care industry
Hospitals
Nonprofit hospitals
Nonprofit organizations
Occupational psychology
Organizational behavior
Patient Protection & Affordable Care Act 2010-US
Profits
Reimbursement
Return on assets
Social responsibility
Stakeholders
Studies
Variables
United States > US
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Summary:A community orientation strategy may be a socially responsible way for hospitals to simultaneously improve financial performance and community health, in accordance with the Affordable Care Act. Using data from the AHA Annual Survey, AHRF, and CMS Cost Reports, this study examined the association between hospital community orientation and three measures of financial performance, and whether that relationship differs for some types of hospitals. The analysis revealed that hospital community orientation was positively associated with total margin and that not-for-profit hospitals engaging in higher levels of community orientation experienced lower operating margins, on average, relative to for-profit hospitals.
ISSN:2158-3609