Factors Affecting the Financial Performance of US Children’s Hospitals: An Exploratory Study

Financial performance is a key indicator of success and competitive advantage for organizations. This paper presents an exploratory study of factors affecting financial performance of US children’s hospitals using secondary data collected by the American Hospital Association. The dataset included all children’s hospitals in the United States. Prior studies explored factors around financial performance of hospitals in general, but to date, there is no enough literature that focuses on children’s hospitals to explore which factors impact financial performance independently and simultaneously. While many factors may affect financial performance, but this study found that: health care accessibility, number of services offered, organizational factors and community factors to be the most significant predictors of financial performance independently and simultaneously. This exploratory study used an empirical quantitative method to examine the characteristics of these independent variables using the resource-based view(RBV) as a theoretical framework. The study offered practical solutions for hospital managers and practitioners. It made valuable recommendation for future research and new addition to the body of knowledge and the literature in this domain of study. Hospital leaders can use these empirical findings to develop financial strategies to increase children’s hospitals overall revenue