Abstract
This study examined the association between high-tech medical services and financial performance of U.S. hospitals by using the resource-based view of a firm. It was hypothesized that hospitals with a rare or large numbers (breadth) of high-tech medical services will experience better financial performance. Furthermore, it was hypothesized that registered nurse (RN) staffing mix and market competition would positively moderate the relationship between high-tech medi-cal services and financial performance. A longitudinal panel sample of 4,362 hospitals from 2005 to 2010 was used to assess the hypothesized relationships. Fixed effects regression models gen-erated results that supported the link between a larger breadth of high tech services and all of the financial performance measures including operating margin, operating expenses per inpatient day, total margin, and return on assets. The same association for the rare high-tech services was sup-ported for only operating margin (positive) and operating expenses (negative) in the same direc-tion that they were predicted. However, significant results for operating revenue (negative) were opposite to the predicted direction. The study did not find evidence for the presence of moderat-ing effects of RN staffing mix or competition.
Published Version
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