Date of Conferral

8-31-2026

Date of Award

August 2026

Degree

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

School

Management

Advisor

Roger Mayer

Abstract

Hospital leaders face increasing pressure to improve quality outcomes while controlling costs. The evidence is limited on whether hospital financial performance predicts overall quality star ratings. Grounded in the general contingency theory, this quantitative, correlational project examined the predictive relationship between operating margin, current ratio, and a composite of quality metrics represented by the overall hospital Quality Star Rating (QSR). Data included the population of acute care hospitals in Massachusetts with 25 or more beds, yielding a final analytic sample of 54. Four year-specific multiple linear regression models were performed from 2021 through 2024. The analyses did not indicate a consistent predictive relationship between operating margin and current ratio and the overall hospital QSR. The regression models were not significant in 2021, F(2, 50) = 1.04, p = .361, R2 = .040; 2023, F(2, 50) = 1.39, p = .258, R2 = .053; 2024 F(2, 51) = 2.57, p = .086, R2 = .092. In 2022, the regression model was significant, F(2, 51) = 3.75, p = .030, R2 = .128, the predictors explained 12.8% of the variance in the QSR. These findings suggest that operating margin and current ratio alone may be insufficient predictors for guiding hospital quality-improvement decisions. These findings suggest that operating margin and current ratio alone may be insufficient predictors for guiding hospital quality-improvement decisions, underscoring the need for leaders to consider additional factors when evaluating quality and patient safety performance. The implications for positive social change arise from enhanced patient care delivered to community members by financially stable hospitals.

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