DIFFERENCES IN CHARACTERISTICS OF HOSPITALS WITH SUSTAINED HIGH AND SUSTAINED LOW PROFITABILITY

The organizational and operational characteristics of 140 private Flor ida hospitals with sustained high profitability and sustained low prof itability were compared using pretax operating margin (PTOM) and preta x return on assets (PROA) measures. Approximately 15 to 20 percent of hospitals were defined as PTOM or PROA high-profit or low-profit for t he years 1990, 1991, and 1992. The PTOM and PROA high-profit groups ha d a lower adjusted average length of stay and debt utilization, and a higher labor yield, occupancy rate, and percent with high hospital acc reditation ratings (p < .05). In addition, the PROA high-profit group had a higher case-mix index and Medicare mix (p < .05). Characteristic s that were different for high-profit and low-profit groups were withi n the scope of management.