An updated model of rural hospital financial distress.

ABSTRACT:

Purpose

To create a model that predicts future financial distress among rural hospitals.

Methods

The sample included 14,116 yearly observations of 2311 rural hospitals recorded between 2013 and 2019. We randomly separated all sampled hospitals into a training set and test set at the start of our analysis. We used hospital financial performance, government reimbursement, organizational traits, and market characteristics to predict a given hospital's risk of experiencing one of three financial distress outcomes-negative cash flow margin, negative equity, or closure.

Findings

The model's area under the receiver operating characteristic curve (AUC) equaled 0.87 within the test set, indicating good predictive ability. We classified 30.55% of the observations in our sample

SUBMITTER: Malone TL 

PROVIDER: S-EPMC11950416 | biostudies-literature | 2025 Mar

REPOSITORIES: biostudies-literature