Researchers from Penn State University and Harvard University found safety net hospitals are likely to experience increasing financial and competitive pressures under the healthcare reform law.
For the study, researchers analyzed the financial performance and governance of 150 safety-net hospitals from 2003 and 2007. The team of researchers categorized the hospitals into governance types: directly controlled public, delegated public authority, private non-profit and private for-profit. The team then analyzed the relationship between governance type and profitability.
They found government-controlled public hospitals in highly competitive markets were more profitable than other types of safety net hospitals. More profitable safety net hospitals were more successful due to government funding.
However, this profitability may change under economic pressures, ongoing deficit reductions and funding changes under healthcare reform.
For the study, researchers analyzed the financial performance and governance of 150 safety-net hospitals from 2003 and 2007. The team of researchers categorized the hospitals into governance types: directly controlled public, delegated public authority, private non-profit and private for-profit. The team then analyzed the relationship between governance type and profitability.
They found government-controlled public hospitals in highly competitive markets were more profitable than other types of safety net hospitals. More profitable safety net hospitals were more successful due to government funding.
However, this profitability may change under economic pressures, ongoing deficit reductions and funding changes under healthcare reform.
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