Open AccessMaintaining sustainability of acute care hospitals
Author(s) -
Michael Costello,
Daniel J. West,
Bernardo Ramirez
Publication year - 2014
Publication title -
journal of hospital administration
Language(s) - English
Resource type - Journals
eISSN - 1927-7008
pISSN - 1927-6990
DOI - 10.5430/jha.v4n1p9
Subject(s) - bankruptcy , closure (psychology) , government (linguistics) , business , health care , intervention (counseling) , finance , sustainability , economic policy , accounting , public economics , economic growth , medicine , economics , market economy , nursing , ecology , linguistics , philosophy , biology
Given the significance of hospital costs as a component of a nation’s total health care spending, governments are giving increasedscrutiny to hospital privatization as a means of controlling cost escalation. While the means of privatization may differamong nations, such transitions mean the introduction of market forces into the supply and availability of hospital services.Correspondingly, nations must determine whether market forces alone should determine whether specific hospitals should beallowed to close based upon the owner’s sole determination. Responses to the financial crisis of 2007-2009 show that governmentintervention preserved several financial institutions whose closure or bankruptcy would have meant the termination ofcritical financial services. The authors believe that such intervention can be rationalized in certain cases of potential acute carehospital closures. Several international examples of health policies intended to maintain government involvement after hospitalprivatization are included.