ARTICLE;
COMPARATIVE STUDY;
ECONOMICS;
FINANCIAL MANAGEMENT;
HEALTH CARE COST;
HEALTH CARE FACILITY;
HEALTH MAINTENANCE ORGANIZATION;
HOSPITAL;
LEGAL ASPECT;
ORGANIZATION;
ORGANIZATION AND MANAGEMENT;
REIMBURSEMENT;
RESIDENTIAL CARE;
SOCIAL CONTROL;
UNITED STATES;
BANKRUPTCY;
CATCHMENT AREA (HEALTH);
EFFICIENCY, ORGANIZATIONAL;
FACILITY REGULATION AND CONTROL;
FINANCIAL MANAGEMENT, HOSPITAL;
HEALTH CARE SECTOR;
HEALTH FACILITY MERGER;
HEALTH MAINTENANCE ORGANIZATIONS;
HOSPITALS, URBAN;
INSURANCE, HEALTH, REIMBURSEMENT;
NEW YORK CITY;
ORGANIZATIONAL INNOVATION;
We chose to use financial statements, rather than other sources such as Medicare cost reports, because they provide detailed information needed to ensure that definitions of revenue and expense items were consistent across hospitals and over time. The explanatory notes and auditors' letters accompanying financial statements also provide a rich source of qualitative information, including evidence of financial support from related organizations such as foundations, research organizations, affiliates, and insurance subsidiaries; unusual actions taken to address serious cash-flow problems (such as defaulting on loans, bond covenants, or employee pension plan payments; or short-term borrowing to cover operating expenses); and auditors' "going concern" warnings, issued when auditors believe that an organization has insufficient resources to remain in operation for another year. We selected five financial indicators that captured the three major aspects of hospital financial performance (profitability, liquidity, and capital debt structure) and that best de-scribed the financial condition of New York City hospitals. The indicators include operating margins, the current ratio and two of its major components (days of cash on hand and days required to pay vendors), and the debt-service coverage ratio. We selected operating margins instead of total margins because they reflect the performance of a hospital's current operations and exclude nonrecurring income as well as unrealized investment income. We excluded the city's public hospitals, because their data could not be separated from those of the larger municipal system, and also six specialty care hospitals.
New York State Health Code of Rules and Regulations, Title 10, Section 86-1.66
New York State Health Code of Rules and Regulations, Title 10, Section 86-1.66.
4
11244315150
Paradigm Lost: Health Policy in New York State in the Post-Axelrod Era
New York: United Hospital Fund, September
B. Viadeck, "Paradigm Lost: Health Policy in New York State in the Post-Axelrod Era," President's Letter (New York: United Hospital Fund, September 1991).
Division of Medicaid Services, New York State Department of Social Services; and Division of Medicaid Managed Care, New York State Department of Health
Division of Medicaid Services, New York State Department of Social Services; and Division of Medicaid Managed Care, New York State Department of Health.
8
11244328136
Analysis conducted by the United Hospital Fund using discharge data from the New York Statewide Planning and Research Cooperative System
Analysis conducted by the United Hospital Fund using discharge data from the New York Statewide Planning and Research Cooperative System.
9
11244276970
There are now thirty-six general care, six specialty care, and eleven municipal hospitals within New York City
There are now thirty-six general care, six specialty care, and eleven municipal hospitals within New York City.
10
11244269408
Washington: MedPAC, March
Medicare Payment Advisory Commission, Report to Congress: Medicare Payment Policy (Washington: MedPAC, March 2001).
