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Ownership And Financial Sustainability Of German Acute Care Hospitals

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  • Boris Augurzky
  • Dirk Engel
  • Christoph M. Schmidt
  • Christoph Schwierz

Abstract

This paper considers the role of ownership form for the financial sustainability of German acute care hospitals over time. We measure financial sustainability by a hospital‐specific yearly probability of default (PD) trying to mirror the ability of hospitals to survive in the market in the long run. The results show that private ownership is associated with significantly lower PDs than public ownership. Moreover, path dependence in the PD is substantial but far from 100%, indicating a large number of improvements and deteriorations in financial sustainability over time. Yet, the general public hospitals have the highest path dependence. Overall, this indicates that public hospitals, which are in a poor financial standing, remain in that state or even deteriorate over time, which may be conflicting with financial sustainability. Copyright © 2011 John Wiley & Sons, Ltd.

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  • Boris Augurzky & Dirk Engel & Christoph M. Schmidt & Christoph Schwierz, 2012. "Ownership And Financial Sustainability Of German Acute Care Hospitals," Health Economics, John Wiley & Sons, Ltd., vol. 21(7), pages 811-824, July.
    • Handle: RePEc:wly:hlthec:v:21:y:2012:i:7:p:811-824
    DOI: 10.1002/hec.1750
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    Cited by:

    1. repec:zbw:rwirep:0517 is not listed on IDEAS
    2. Adam Pilny, 2014. "Mergers and Acquisitions in the German Hospital Market – Who are the Targets?," Ruhr Economic Papers 0518, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    3. Adam Pilny, 2017. "Explaining Differentials in Subsidy Levels Among Hospital Ownership Types in Germany," Health Economics, John Wiley & Sons, Ltd., vol. 26(5), pages 566-581, May.
    4. Pilny, Adam, 2014. "Mergers and Acquisitions in the German Hospital Market – Who are the Targets?," Ruhr Economic Papers 518, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. Adam Pilny, 2014. "Explaining Differentials in Subsidy Levels among Hospital Ownership Types in Germany," Ruhr Economic Papers 0517, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    6. Kaiser, Florian & Schmid, Andreas & Schlüchtermann, Jörg, 2020. "Physician-leaders and hospital performance revisited," Social Science & Medicine, Elsevier, vol. 249(C).
    7. repec:zbw:rwirep:0518 is not listed on IDEAS
    8. Mª Isabel Ortega-Díaz & Ricardo Ocaña-Riola & Carmen Pérez-Romero & José Jesús Martín-Martín, 2020. "Multilevel Analysis of the Relationship between Ownership Structure and Technical Efficiency Frontier in the Spanish National Health System Hospitals," IJERPH, MDPI, vol. 17(16), pages 1-19, August.
    9. Christin Seifert & Matthias Damert & Edeltraud Guenther, 2020. "Environmental Management in German Hospitals—A Classification of Approaches," Sustainability, MDPI, vol. 12(11), pages 1-24, May.
    10. Mareike Heimeshoff & Jonas Schreyögg & Oliver Tiemann, 2014. "Employment effects of hospital privatization in Germany," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(7), pages 747-757, September.

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