Is There a Future for Small Hospitals in Germany?
19 Pages Posted: 3 Sep 2010
Date Written: August 1, 2010
Abstract
We analyse the financial performance of small German hospitals based on balance sheet data of about 1,000 hospitals in 2007. Measures of financial performance are the earnings before interest, tax, depreciation, and amortisation (EBITDA) and the probability of default (PD). We find that, on average, small hospitals have more financial difficulties than large ones. However, there is considerable heterogeneity among small hospitals. While small private-for-profit hospitals tend to perform very well, small public hospitals face considerable financial problems. Apart from ownership, we find that specialisation, less subsidies in absolute terms, and a higher share of lump-sum subsidies are associated with a better financial performance.
Keywords: Hospital ownership, financial performance
JEL Classification: I11, I18
Suggested Citation: Suggested Citation
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