264177 Factors associated with seismic risk in California hospitals

Monday, October 29, 2012

Jon M. Thompson, PhD , Health Services Administration Program, James Madison University, Harrisonburg, VA
Michael J. McCue, DBA , Department of Health Administration, Virginia Commonwealth University, Richmond, VA
California has required its hospitals to assess their vulnerability of collapse from earthquakes, and make the necessary facility upgrades and or replacement to become compliant with state regulation. However, little is known about the characteristics of the hospitals that have the greatest risk of structural collapse (e.g., SPC-1 hospitals). The purpose of this study is to determine the organizational and market factors associated with those hospitals rated as SPC-1 hospitals. We used the resource dependency perspective to examine these factors, and we reviewed prior literature to identify the key factors that may relate to non-compliance of California hospitals. To carry out our study, we used organizational, operational and financial data from the California Office of Health Planning and Development for fiscal years 2007 through 2009. Also, we used market data made available from the Area Resource File. After excluding hospitals in counties that do not have any SPC-1 facilities, and hospitals that are in the process of becoming compliant with the seismic building standards, we established a final sample of 258 acute care hospitals. We used logistic regression analysis to determine factors associated with the presence of SPC-1 hospitals. Our findings indicate that SPC-1 hospitals are located in more populated areas, have smaller market share, demonstrate a higher percentage of Medicaid patients and possess less liquidity. Implications for hospital executives and health policymakers are discussed.

Learning Areas:
Administration, management, leadership

Learning Objectives:
1. To analyze organizational and market factors related to California hospitals that have major risk due to seismic events. 2. To describe those factors having the greatest impact on these vulnerable hospitals. 3. To explain the study implications for hospital administrators and health policymakers.

Presenting author's disclosure statement:

Qualified on the content I am responsible for because: I have conducted this research, and have presented at past APHA Annual Meetings.
Any relevant financial relationships? No

I agree to comply with the American Public Health Association Conflict of Interest and Commercial Support Guidelines, and to disclose to the participants any off-label or experimental uses of a commercial product or service discussed in my presentation.