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JOURNAL OF ORGANIZATIONAL PSYCHOLOGY
Examining the Relationship between Community Orientation and Hospital Financial Performance
Author(s): J’Aime C. Jennings, Amy Y. Landry, Larry R. Hearld, Scott W. Snyder, Robert Weech-Maldonado, Patricia A. Patrician
Citation: J’Aime C. Jennings, Amy Y. Landry, Larry R. Hearld, Scott W. Snyder, Robert Weech-Maldonado, Patricia A. Patrician, (2017) "Examining the Relationship between Community Orientation and Hospital Financial Performance," Journal of Organizational Psychology, Vol. 17, Iss. 2, pp. 50-60
Article Type: Research paper
Publisher: North American Business Press
Abstract:
A community orientation strategy may be a socially responsible way for hospitals to simultaneously improve financial performance and community health, in accordance with the Affordable Care Act. Using data from the AHA Annual Survey, AHRF, and CMS Cost Reports, this study examined the association between hospital community orientation and three measures of financial performance, and whether that relationship differs for some types of hospitals. The analysis revealed that hospital community orientation was positively associated with total margin and that not-for-profit hospitals engaging in higher levels of community orientation experienced lower operating margins, on average, relative to for-profit hospitals.
