• Study
  • Published August 2019

Correlation between hospital finances and quality and safety of patient care.

The relationship between hospital financial performance and patient safety remains somewhat controversial. Although it makes intuitive sense that more financially stable hospitals should be able to invest more in improving safety, prior studies have not consistently confirmed this hypothesis. Investigators examined the relationship between financial performance and the safety and quality of care at 108 hospitals in New York State. They found that stronger financial performance was correlated with improved patient experience, lower readmission rates, and higher performance on measures of safety and quality. This finding has policy implications, as other studies have found that safety-net hospitals (which generally have lower financial margins) face more difficulties in responding to safety and quality regulations.

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