Date of Conferral

2015

Degree

Doctor of Business Administration (D.B.A.)

School

Management

Advisor

Cheryl Lentz

Abstract

Cardiovascular (CV) patients receive one-third of the care and account for $444 billion of the health care costs in the United States. The cardiovascular service line (CVSL) in hospitals contributes to the profitability influenced by elements of resource dependence theory (RDT). The purpose of this study was to understand whether the regression model of hospital characteristics and outcomes would predict profitability in a CVSL through the cost-to-charge ratio (CCR). The use of a general linear model and multiple regression analysis to examine the 2012 National Inpatient Sample from the Healthcare Cost and Utilization Project allowed estimates from a weighted sample of discharges from all hospitals in participating states. Transformation to dichotomous, independent variables preceded analysis of CV-conditions by discharges. An analysis of variance included in the validated model of grouped strata predicted a level of profitability through the CCR, (4, 509) = 129.83, p < .001, R2 = .505. Mortality was not a significant predictor in the regression model. The 3 characteristic variables with an inverse relationship to the CCR, which resulted in favorable profitability for CVSL, included large, academic, and private for-profit institutions. Prior research aligns well to the study, which emphasized the importance of RDT. Leaders in health care organizations may choose to employ decision making that is dependent upon big data and reference to internal resources to achieve reform expectations. Predictive modeling may aid in the strategic direction of health care organizations. Social implications of this study include hospitals striving to enhance the value proposition by centering care activities around the person over rationing finite resources by condition.

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