A Decomposition of Hospital Profitability: An Application of DuPont Analysis to the US Market

Health Services Research & Managerial Epidemiology

JasonTurner¹ 

关键词: DuPont analysis;    hospitals;    profitability;    efficiency;    capital structure;    hospital ownership;   

DOI  :  10.1177/2333392815590397

学科分类：医学（综合）

来源: Sage Journals

【 摘 要 】

Objectives:This paper evaluates the drivers of profitability for a large sample of U.S. hospitals. Following a methodology frequently used by financial analysts, we use a DuPont analysis as a framework to evaluate the quality of earnings. By decomposing returns on equity (ROE) into profit margin, total asset turnover, and capital structure, the DuPont analysis reveals what drives overall profitability.Methods:Profit margin, the efficiency with which services are rendered (total asset turnover), and capital structure is calculated for 3,255 U.S. hospitals between 2007 and 2012 using data from the Centers for Medicare & Medicaid Services’ Healthcare Cost Report Information System (CMS Form 2552). The sample is then stratified by ownership, size, system affiliation, teaching status, critical access designation, and urban or non-urban location. Those hospital characteristics and interaction terms are then regressed (OLS) against the ROE and the respective DuPont components. Sensitivity to regression methodolo...

【 授权许可】

CC BY