Buy this Article for $10.95

Have a coupon or promotional code? Enter it here:

When you buy this you'll get access to the ePub version, a downloadable PDF, and the ability to print the full article.

Keywords

financial performance, hospital conversions, investor ownership, not-for-profit hospital operations

 

Authors

  1. Sloan, Frank A.
  2. Conover, Christopher J.
  3. Ostermann, Jan

Abstract

This article presents information on the rates of return obtained by purchasers of U.S. hospitals since the mid 1980s. The key hypothesis tested in this study was whether for-profit acquirers are able to purchase hospitals at below-market prices. We test the hypothesis by comparing internal rates of return to an estimate of the weighted cost of capital for all for-profit hospitals in the year the transaction occurred.