Table 3. Effect of Network Participation on Rural Hospital Financial Performance, by Network Type: Calendar Years 1985-901.
| Measures of Performance | Fixed Effects | Random Effects | ||
|---|---|---|---|---|
|
|
|
|||
| Estimate of Effect of Network Participation | t -Statistic | Estimate of Effect of Network Participation | t -Statistic | |
| Profitability | ||||
| Operating Margin | ||||
| RHNP | .005 | 1.524 | -.006 | -1.196 |
| Non-RHNP | -.001 | -.647 | .001 | .726 |
| Liquidity | ||||
| Current Ratio (log) | ||||
| RHNP | -.001 | -.111 | -.27×10-3 | -.014 |
| Non-RHNP | -.012 | -1.671 | .021 | 1.877 |
| Capital Structure | ||||
| Equity Financing Ratio | ||||
| RHNP | .016 | .814 | NA | NA |
| Non-RHNP | -.016 | -1.191 | NA | NA |
| Long-Term Debt-to-Equity Ratio | ||||
| RHNP | -.002 | -.227 | .001 | .079 |
| Non-RHNP | .001 | .186 | .012 | *2.026 |
| Other | ||||
| Average Daily Census (log) | ||||
| RHNP | .010 | 1.123 | -.006 | -.452 |
| Non-RHNP | .012 | *2.166 | -.46×10-3 | -.066 |
*
Significant at the .05 level.
1
The independent variables used in the analysis included hospital bed size, bed size squared, Medicare payment status, ownership, and case-mix index, as well as a dummy variable for each year.
NOTES: RHNP is the Rural Hospital Network Program. NA is not available.
SOURCE: Moscovice, I., University of Minnesota, 1995.