“…Thus, depending upon the type of hospital, managers may have different incentives and face different political costs, and regulatory reimbursement policies that affect financial performance and possible financial distress or closure. Some research studies provide evidence that the form of hospital ownership control is associated with differences in the real-valued 1 (i.e., financing, investing and operating) decision performance of hospital managers, which is attributed to different economic incentives placed on hospital managers (Relman, 1980;Renn et al, 1985;Forgione, 1987;Register et al, 1988;McCue & Ozcan, 1992;Forgione, Schiff & Crumbley, 1996;Roomkin & Weisbrod, 1999;Becker & Potter, 2002;Brickley & Van Horn, 2002;Leone & Van Horn, 2005). The FP hospital objective is to maximize profits and shareholder wealth, which may be achieved by providing incentives to managers through profit-sharing arrangements, stock option plans, and without the US Internal Revenue Service's (IRS) reasonablecompensation limits on management salaries (US IRS, 1969).…”