Skip to main page content
U.S. flag

An official website of the United States government

Dot gov

The .gov means it’s official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.

Https

The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Access keys NCBI Homepage MyNCBI Homepage Main Content Main Navigation
. 2010 Dec;67(6):694-706.
doi: 10.1177/1077558710368807. Epub 2010 Jun 2.

Trends in asset structure between not-for-profit and investor-owned hospitals

Paula H Song  1 , Kristin L Reiter
Affiliations

Trends in asset structure between not-for-profit and investor-owned hospitals

Paula H Song et al. Med Care Res Rev. 2010 Dec.

Abstract

The delivery of health care is a capital-intensive industry, and thus, hospital investment strategy continues to be an important area of interest for both health policy and research. Much attention has been given to hospitals' capital investment policies with relatively little attention to investments in financial assets, which serve an important role in not-for-profit (NFP) hospitals. This study describes and analyzes trends in aggregate asset structure between NFP and investor-owned (IO) hospitals during the post-capital-based prospective payment system implementation period, providing the first documentation of long-term trends in hospital investment. The authors find hospitals' aggregate asset structure differs significantly based on ownership, size, and profitability. For both NFP and IO hospitals, financial securities have remained consistent over time, while fixed asset representation has declined in IO hospitals.

PubMed Disclaimer

Figures

Figure 1
Figure 1
Hospitals Portfolio of Unrestricted Assets: Average Proportion by Asset Type and Ownership 1997–2006
Figure 2
Figure 2
Average Proportion by Assets By Hospital Size and Ownership 1997–2006
Figure 3
Figure 3
Trends in Hospitals’ Asset Structure by Ownership 1997–2006
Figure 4
Figure 4
NFP Hospitals Average Proportion of Assets by Profitability 1997–2006
See this image and copyright information in PMC

References

    1. Barniv R, Danvers K, Healy J. The impact of Medicare capital prospective payment regulation on hospital capital expenditures. Journal of Accounting and Public Policy. 2000;19(1):9–40.
    1. Calem PS, Rizzo JA. Financing Constraints and Investment: New Evidence from Hospital Industry Data. Journal of Money, Credit, and Banking. 1995;27(4):1002–14.
    1. California Hospital Association. Report on Hospital Closures in California. 2008. (Updated 10/30/2008. http://www.calhospital.org.
    1. Congressional Budget Office. Nonprofit Hospitals and Tax Arbitrage. Washington, D.C.: The Congress of the United States; 2006.
    1. Gentry WM. Debt, Investment, and Endowment Accumulation: The case of Not-For-Profit Hospitals. Journal of Health Economics. 2002;21(5):845–72. - PubMed

Publication types

MeSH terms