For the study, researchers analyzed financial performance and governance structures of 150 hospitals from 2003 to 2007. The researchers found that safety net hospitals governed by elected officials and in highly competitive markets saw higher profit margins than safety net hospitals with other types of governance.
The researchers concluded these types of safety net hospitals experienced healthier profits due to subsidies from state and local governments. However, the researchers also noted this prospect may change as the economy slowly turns around and lawmakers tighten budgets to reduce the national deficit. Provisions under the healthcare reform law may also increase financial pressures on safety net hospitals.
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