Hospital Capital Investment During the Great Recession
Hospital capital investment is important for acquiring and maintaining technology and equipment needed to provide health care. Reduction in capital investment by a hospital has negative implications for patient outcomes. Most hospitals rely on debt and internal cash flow to fund capital investment....
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| Format: | Article |
| Language: | English |
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SAGE Publishing
2017-06-01
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| Series: | Inquiry: The Journal of Health Care Organization, Provision, and Financing |
| Online Access: | https://doi.org/10.1177/0046958017708399 |
| _version_ | 1819039659777327104 |
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| author | Sung Choi PhD |
| author_facet | Sung Choi PhD |
| author_sort | Sung Choi PhD |
| collection | DOAJ |
| description | Hospital capital investment is important for acquiring and maintaining technology and equipment needed to provide health care. Reduction in capital investment by a hospital has negative implications for patient outcomes. Most hospitals rely on debt and internal cash flow to fund capital investment. The great recession may have made it difficult for hospitals to borrow, thus reducing their capital investment. I investigated the impact of the great recession on capital investment made by California hospitals. Modeling how hospital capital investment may have been liquidity constrained during the recession is a novel contribution to the literature. I estimated the model with California Office of Statewide Health Planning and Development data and system generalized method of moments. Findings suggest that not-for-profit and public hospitals were liquidity constrained during the recession. Comparing the changes in hospital capital investment between 2006 and 2009 showed that hospitals used cash flow to increase capital investment by $2.45 million, other things equal. |
| first_indexed | 2024-12-21T08:56:44Z |
| format | Article |
| id | doaj.art-650e0427e1bf493993306dd63618973c |
| institution | Directory Open Access Journal |
| issn | 0046-9580 1945-7243 |
| language | English |
| last_indexed | 2024-12-21T08:56:44Z |
| publishDate | 2017-06-01 |
| publisher | SAGE Publishing |
| record_format | Article |
| series | Inquiry: The Journal of Health Care Organization, Provision, and Financing |
| spelling | doaj.art-650e0427e1bf493993306dd63618973c2022-12-21T19:09:33ZengSAGE PublishingInquiry: The Journal of Health Care Organization, Provision, and Financing0046-95801945-72432017-06-015410.1177/0046958017708399Hospital Capital Investment During the Great RecessionSung Choi PhD0Author is currently affiliated to Owen Graduate School of Management, Vanderbilt UniversityHospital capital investment is important for acquiring and maintaining technology and equipment needed to provide health care. Reduction in capital investment by a hospital has negative implications for patient outcomes. Most hospitals rely on debt and internal cash flow to fund capital investment. The great recession may have made it difficult for hospitals to borrow, thus reducing their capital investment. I investigated the impact of the great recession on capital investment made by California hospitals. Modeling how hospital capital investment may have been liquidity constrained during the recession is a novel contribution to the literature. I estimated the model with California Office of Statewide Health Planning and Development data and system generalized method of moments. Findings suggest that not-for-profit and public hospitals were liquidity constrained during the recession. Comparing the changes in hospital capital investment between 2006 and 2009 showed that hospitals used cash flow to increase capital investment by $2.45 million, other things equal.https://doi.org/10.1177/0046958017708399 |
| spellingShingle | Sung Choi PhD Hospital Capital Investment During the Great Recession Inquiry: The Journal of Health Care Organization, Provision, and Financing |
| title | Hospital Capital Investment During the Great Recession |
| title_full | Hospital Capital Investment During the Great Recession |
| title_fullStr | Hospital Capital Investment During the Great Recession |
| title_full_unstemmed | Hospital Capital Investment During the Great Recession |
| title_short | Hospital Capital Investment During the Great Recession |
| title_sort | hospital capital investment during the great recession |
| url | https://doi.org/10.1177/0046958017708399 |
| work_keys_str_mv | AT sungchoiphd hospitalcapitalinvestmentduringthegreatrecession |