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Table 8 Regression of changes in quality score on changes in hospital financial performance

From: Performing well in financial management and quality of care: evidence from hospital process measures for treatment of cardiovascular disease

Dependent variable: quality score (1) (2) (3) (4)
Natural log of Total Assets −0.00101 (−1.198) −0.000460 (−0.538) −0.000755 (−0.773) −5.59e-05 (−0.0558)
∆Financial Leverage 0.0150** (2.248) 0.0148** (2.227) 0.0131** (1.979) 0.0126* (1.903)
∆Profit Margin 0.0505*** (3.022) 0.0499*** (2.988) 0.0316* (1.841) 0.0307* (1.787)
∆Asset Turnover (Sales to Assets) 0.000745 (0.195) 0.00117 (0.306) −0.00472 (−1.183) −0.00463 (−1.160)
∆Current Ratio −0.000143 (−0.180) −0.000179 (−0.224) 0.000119 (0.145) 9.84e-05 (0.119)
∆Days Cash On Hand 2.22e-05 (0.492) 2.47e-05 (0.548) 3.54e-05 (0.724) 3.86e-05 (0.789)
∆Days Patients Accounts Receivable −4.25e-05 (−0.629) −3.61e-05 (−0.534) 1.09e-08 (0.000149) 5.95e-06 (0.0813)
∆Average Age of Plant −0.000136 (−1.085) −0.000129 (−1.025) 1.21e-05 (0.103) 1.86e-05 (0.158)
∆Salary to Revenue 0.0802** (2.337) 0.0772** (2.252) 0.0515 (1.366) 0.0460 (1.221)
∆Uncompensated Care Cost to Revenue    −0.0326 (−1.198) −0.0329 (−1.205)
Public Hospital −0.00535* (−1.917)   −0.00983*** (−3.239)  
Not-for-profit Hospital   −0.00362 (−1.466)   −0.00733*** (−2.952)
Urban Hospital    −6.65e-05 (−0.0249) 0.00155 (0.588)
Constant 0.0552** (2.250) 0.0460* (1.880) 0.0504** (2.049) 0.0382 (1.545)
Year Fixed-effects Yes Yes Yes Yes
State Fixed-effects Yes Yes Yes Yes
N 9,782 9,782 6,719 6,719
Adj. R-squared 0.079 0.079 0.128 0.128
  1. The dependent variable is the change of quality score. The independent variables include the natural log of total assets, changes in financial characteristics (financial leverage, profit margin, asset turnover, current ratio, days cash on hand, days patient accounts receivable, average age of plant, and total salary to revenue), and three dummy variables: public hospital, nonprofit hospital, and urban hospital. All specifications use OLS regressions with year and state fixed-effects. z-statistics are shown in the parentheses with ***, ** and * indicating its statistical significant level of 1%, 5% and 10% respectively.