This study seeks to determine if accounting data from an earlier time period is relevant in classifying small and medium-sized hospitals as currently open or closed. Contingent on the successful resolution of the preceding objective, this study further seeks to develop a model using these data to determine which hospitals are likely to remain open and which will probably close.;Forty-six small and medium sized community hospitals which closed in 1987 were matched with similar hospitals which remained open. Eighteen ratios, covering 7 financial characteristics of the hospital, were analyzed. Using a paired t-test on the differences of the means of the two groups (open/closed), the first objective was successfully met. Accounting data from an earlier time period is relevant in classifying small and medium-sized hospitals as currently open or closed.;Using a selected ratio for each financial characteristic a multiple logistic regression model was developed. This model was successful in determining which hospital was likely to close and which was likely to remain open up to 2 years prior to closure. |