Rates of return from hospital conversions
- PMID: 12744448
- DOI: 10.1097/00004010-200304000-00003
Rates of return from hospital conversions
Abstract
This article presents information on the rates of return obtained by purchasers of U.S. hospitals since the mid 1980s. The key hypothesis tested in this study was whether for-profit acquirers are able to purchase hospitals at below-market prices. We test the hypothesis by comparing internal rates of return to an estimate of the weighted cost of capital for all for-profit hospitals in the year the transaction occurred.