Rural Hospital Mergers Increased Between 2005 and 2016-What Did Those Hospitals Look Like?

Inquiry : a Journal of Medical Care Organization, Provision and Financing
Dunc WilliamsPaula H Song

Abstract

The objective of this study is to determine whether key hospital-level financial and market characteristics are associated with whether rural hospitals merge. Hospital merger status was derived from proprietary Irving Levin Associates data for 2005 through 2016 and hospital-level characteristics from HCRIS, CMS Impact File Hospital Inpatient Prospective Payment System, Hospital MSA file, AHRF, and U.S. Census data for 2004 through 2016. A discrete-time hazard analysis using generalized estimating equations was used to determine whether factors were associated with merging between 2005 and 2016. Factors included measures of profitability, operational efficiency, capital structure, utilization, and market competitiveness. Between 2005 and 2016, 11% (n = 326) of rural hospitals were involved in at least one merger. Rural hospital mergers have increased in recent years, with more than two-thirds (n = 261) occurring after 2011. The types of rural hospitals that merged during the sample period differed from nonmerged rural hospitals. Rural hospitals with higher odds of merging were less profitable, for-profit, larger, and were less likely to be able to cover current debt. Additional factors associated with higher odds of merging were...Continue Reading

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May 1, 2021·International Journal of Environmental Research and Public Health·Javier Cerezo-Espinosa de Los MonterosValle Coronado-Vázquez
Jul 31, 2021·Journal of Hospital Medicine : an Official Publication of the Society of Hospital Medicine·Jonathan E FriedAaron L Schwartz

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