C. Christopher Lee, Soomin Park and Benjamin Bae

Correspondence: Soomin Park, Soomin.Park@howard.edu

School of Business, Howard University, Washington.

pdf (610.92 Kb) | doi: https://doi.org/10.47260/bae/1315

Abstract

This study examines how hospital financial characteristics relate to operational efficiency and whether these relationships differ by teaching status. Using 2020 U.S. hospital data, efficiency is measured via Data Envelopment Analysis and hospitals are classified as technically efficient or inefficient. Logistic regression is then employed to assess how financial ratios influence the likelihood of efficiency. The results show that asset utilization, working capital management, and profitability are positively associated with efficiency, while capital structure effects vary by teaching status, highlighting the importance of organizational context in hospital performance evaluation.

Keywords:

  Financial ratios, hospital efficiency, hospital finance, hospital financial ratios, hospital performance.

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