If you need an accessible version of this item please contact JSTOR User Support

Assessing the Characteristics of Hospital Bond Defaults

Michael J. McCue and Jan P. Clement
Medical Care
Vol. 34, No. 11 (Nov., 1996), pp. 1121-1134
Stable URL: http://www.jstor.org/stable/3766566
Page Count: 14
  • Download PDF
  • Cite this Item

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If you need an accessible version of this item please contact JSTOR User Support
Assessing the Characteristics of Hospital Bond Defaults
Preview not available

Abstract

Objectives. The authors identify market, operational, and financial characteristics associated with the default of hospital revenue bonds using logistic regression analysis. Methods. Data from 22 defaulted hospitals and 260 nondefaulted hospitals from 1988 to 1992 are analyzed. Results. Findings indicated that defaulted hospitals had smaller market shares, were located in near-urban markets, and incurred higher expenses per discharge than nondefaulted hospitals. Defaulted hospitals also were highly leveraged and had lower debt service coverage ratios compared with nondefaulted hospitals. Conclusions. Results suggest that market share, ability to generate sufficient cash flow to meet debt service, and amount of debt on hand are critical factors in avoiding a bond default but not government payer mix.

Page Thumbnails

  • Thumbnail: Page 
1121
    1121
  • Thumbnail: Page 
1122
    1122
  • Thumbnail: Page 
1123
    1123
  • Thumbnail: Page 
1124
    1124
  • Thumbnail: Page 
1125
    1125
  • Thumbnail: Page 
1126
    1126
  • Thumbnail: Page 
1127
    1127
  • Thumbnail: Page 
1128
    1128
  • Thumbnail: Page 
1129
    1129
  • Thumbnail: Page 
1130
    1130
  • Thumbnail: Page 
1131
    1131
  • Thumbnail: Page 
1132
    1132
  • Thumbnail: Page 
1133
    1133
  • Thumbnail: Page 
1134
    1134