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Hospital mergers in the mid 1990s: Predicting likely targets

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Date Issued:
1997
Summary:
Consolidation of the hospital industry is occurring at an increasing pace in the 1990s. This recent rise in mergers and acquisitions has prompted interest in what characteristics make certain hospitals good takeover targets. This study compares hospital and regional differences between 11 acquired versus 296 non-acquired hospitals in Texas one year prior to takeover in 1995. A stochastic frontier model and PROBIT model were used to determine which characteristics suggest takeover likelihood. The findings indicate that inefficiency is highly significant in predicting which hospitals make good takeover candidates. Hospitals in counties with large populations and with a large senior citizen community are also significant indicators of potential acquisition. The results suggest that these acquisitions are a market mechanism for disciplining inefficient hospitals.
Title: Hospital mergers in the mid 1990s: Predicting likely targets.
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Name(s): Drpic, Ingrid Giovanna.
Florida Atlantic University, Degree grantor
Manage, Neela D., Thesis advisor
Type of Resource: text
Genre: Electronic Thesis Or Dissertation
Date Issued: 1997
Publisher: Florida Atlantic University
Place of Publication: Boca Raton, Fla.
Physical Form: application/pdf
Extent: 80 p.
Language(s): English
Summary: Consolidation of the hospital industry is occurring at an increasing pace in the 1990s. This recent rise in mergers and acquisitions has prompted interest in what characteristics make certain hospitals good takeover targets. This study compares hospital and regional differences between 11 acquired versus 296 non-acquired hospitals in Texas one year prior to takeover in 1995. A stochastic frontier model and PROBIT model were used to determine which characteristics suggest takeover likelihood. The findings indicate that inefficiency is highly significant in predicting which hospitals make good takeover candidates. Hospitals in counties with large populations and with a large senior citizen community are also significant indicators of potential acquisition. The results suggest that these acquisitions are a market mechanism for disciplining inefficient hospitals.
Identifier: 9780591624939 (isbn), 15492 (digitool), FADT15492 (IID), fau:12256 (fedora)
Collection: FAU Electronic Theses and Dissertations Collection
Note(s): College of Business
Thesis (M.A.)--Florida Atlantic University, 1997.
Subject(s): Hospital mergers
Hospital mergers--United States
Hospitals--Administration
Held by: Florida Atlantic University Libraries
Persistent Link to This Record: http://purl.flvc.org/fcla/dt/15492
Sublocation: Digital Library
Use and Reproduction: Copyright © is held by the author, with permission granted to Florida Atlantic University to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.
Use and Reproduction: http://rightsstatements.org/vocab/InC/1.0/
Host Institution: FAU
Is Part of Series: Florida Atlantic University Digital Library Collections.