A Comparative Analysis: The Impact Of Non-Operating Revenues On Financial Viability Of Urban And Rural Hospitals
<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="color: #0d0d0d; font-size: 10pt;"><span style="font-family: Times New Roman;">Fifty New York hospitals, 25 urban facilities and 25 rural facilities, were chosen at random for analysis.<span style="mso-spacerun: yes;"> </span>They were examined to determine whether non-operating revenue – contributions, gifts, grants (as defined by IRS, Form 990) – plays an important role in fiscal viability .<span style="mso-spacerun: yes;"> </span>Three years of data, 2005 – 2007, for each hospital was selected, and several financial variables were used to construct a fiscal viability index. The purpose of this study was to determine whether there is a positive difference in the fiscal health of hospitals when the hospitals can solicit more income from non-healthcare/non-operating activities in the form of outside gifts and grants.<span style="mso-spacerun: yes;"> </span>Another main purpose of this study was to determine which hospital sector, if any – urban vs. rural – is more dependent upon non-operating revenues for their fiscal viability.</span></span></p>