For-Profit Hospitals Have a Unique Opportunity to Serve as Anchor Institutions in the U.S.

Abstract

Background Hospitals serve as anchor institutions in many U.S. communities and make contributions to bolster population health and reduce preventable death. Most studies to date have focused on nonprofit hospitals, but there may be significant opportunity for for-profits to fill this role in both urban and rural communities. Methods We calculated descriptive statistics and a multivariate regression model to assess economic and health characteristics for all U.S. counties that contain for-profit as compared to nonprofit or public hospitals. Results For-profit hospitals are more likely to be located in counties with higher uninsurance rates and lower self-rated health. After controlling for hospital and county characteristics, we found a significant and positive relationship between for-profit hospital presence and higher county unemployment, higher uninsured rates, and the number of residents reporting poor/fair health. For-profit hospitals were also less likely to be located in states that had expanded Medicaid or which had certificate-of-need laws. Conclusions There is substantial opportunity for for-profit hospitals to serve as anchor institutions in many U.S. communities, despite this label more traditionally being applied to nonprofit hospitals. Given that there is not currently a regular reporting mechanism for documenting the community health contributions of for-profit hospitals, policymakers and researchers should evaluate the current state of these contributions and develop incentives to encourage more anchor activities to benefit economically vulnerable communities in the U.S.

For-profit hospitals as anchor institutions in the United States: a study of organizational stability

“…Beyond closures, this is important to consider in the case of mergers as well, since a merging hospital may find itself with a different identity or mission, potentially weakening its established community ties, or even with a reduced workforce. At the same time, for-profit hospitals tend to exist in areas with greater health needs [23]. These areas also face greater numbers of hospital closures and mergers overall, as our findings show.…”

Closures and Other Anchor Characteristics of for-profit Hospitals: A Cross-sectional Study

“…At the same time, for-pro t hospitals tend to exist in areas with greater health needs. 21 These areas also face greater numbers of hospital closures and mergers overall, as our ndings show. This combination of factors indicates that for-pro t hospitals hold critical potential for strengthening local economies and elevating the health and well-being in areas where they would have an impact.…”

Hospitals and community benefit requirements: perspectives of community benefit administrators in Massachusetts

“…An anchor institution is defined as a placed-based entity, often a nonprofit institution, that is tied to their surroundings (their local communities) by mission, invested capital, or relationships to customers, employees, and vendors (38). There is ongoing research on the impact such institutions make on the health and wealth of their communities (39,40). One CBA hypothesized the future of anchor institutions and community benefits:…”