From Wall Street to Main Street: The Financial–Operational Performance Link in Hospitals Across Geographies

Authors

• Chulho Christopher Lee, Central Connecticut State University, School of Business, USA
• Lan Luo, University of Hartford, Barney School of Business, USAFollow
• Yinfei Chen, Central Connecticut State University, School of Business, USA
• Taylor K. Brown, Central Connecticut State University, School of Business, USA
• Hyoun Sook Lim, Central Connecticut State University, School of Business, USA
• Ying Chen, Central Connecticut State University, School of Business, USA

ORCID

C. C. Lee: https://orcid.org/0000-0002-3449-2168

L. Luo: https://orcid.org/0000-0001-6047-5604

Y. Chen: https://orcid.org/0000-0001-7082-6332

T. K. Brown: https://orcid.org/0009-0003-5415-7556

H. S. Lim: https://orcid.org/0000-0002-1781-7696

Y. Chen: https://orcid.org/0000-0002-7783-0315

Keywords

Hospital operational efficiency, Hospital financial performance, Hospital location, Data envelopment analysis (DEA)

Abstract

This study examines the relationship between hospital financial performance and operational efficiency. Using data from the American Hospital Association (AHA), we find that profitability, debt coverage, and working capital efficiency are positively associated with hospital efficiency, while liquidity and capital structure exhibit a negative correlation. Fixed-asset efficiency, however, shows no significant impact on hospital operational efficiency. Furthermore, we find that the operational efficiency of urban hospitals is, in general, more sensitive to financial performance than that of rural hospitals. These findings provide practical insights for healthcare administrators and policymakers aiming to enhance hospital operational efficiency and promote equitable care delivery.

Recommended Citation

Lee, C., Luo, L., Chen, Y., Brown, T., Lim, H., & Chen, Y. (2026). From Wall Street to Main Street: The Financial–Operational Performance Link in Hospitals Across Geographies. Economic and Business Review, 28(2), 108-126. https://doi.org/10.15458/2335-4216.1371

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 License.