Abstract:

Financial decisions in private hospitals are crucial for the continuation of health care. In the financing of health services, self-capital and debt funding resources are used. The choice between these two sources brings significant consequences on the risk and return of the hospital. This study, using financial data from private hospitals in the United States, examined the factors affecting the financing of loans in hospitals. The analysis was carried out through data from the period 1995-2015. The findings have shown that the debt currency structure is an important factor in the financing of private hospitals. Long-term debt funding has been found to be relatively more used for short-term debt funding. When the liquidity rate, the non-distributed profit rate, the effective use rate of the total assets, the size of the hospital and the rate of interest satisfaction increased, the short-term debt rate in private hospitals was found to decrease. There is a positive relationship between the profit rate and the short-term debt rate. The liquidity rate, the hospital size, the rise in the interest rate has a negative impact on the total debt. If the likvidity rate and the increase in the interest rate will have a negative impact on the long-term debt rate.

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