Table 2 shows the descriptive statistics of variables used in the analysis. Our empirical analyses utilize individual hospital-level data from 2018 to 2020 in the U.S. The final dataset includes 3,477 observations, and 78% of them are non-profit hospitals. Both hospital quality of care and patient satisfaction are measured on a 5-point scale, and the average points of the performance measures are 3.16 and 3.08, respectively. In our sample, about 68% hold PFACs and practice patient engagement. The average level of physical resources in the hospitals is about $110.7 million, and the level of financial resources is about $833.4 million. Our analysis uses the physical and financial resources as the logged value. The sample hospitals have an average of 0.28 physicians and dentists per bed and 2.11 registered nurses per bed. The social and institutional resources are measured as a percentage of the minority or non-white population in the county where each hospital is located. Counties in our sample have an average of 22% minority population.
Regarding other hospital characteristics, sample hospitals have 182 beds on average, and 52% are in a minor or major teaching affiliation status in the sample period. The hospitals have 33% and 10% of patient discharges covered by Medicare and Medicaid programs. The community demand for financial assistance from each hospital is measured by the hospital’s unreimbursed and uncompensated care costs, and the average value is about $14 million. The sample average CMI index is 1.69. Among the community-level control variables, the total population in each county is about 256.6 thousand people on average, and about 17% of the population is over 65 years old. The average per capita personal income level is $51.8 thousand. The sample counties have an average uninsured rate of 10%. Our analysis uses community demand for hospital financial assistance, total population, and personal income as logged values. All variables measured in dollar amounts are converted to 2018 real value using the Consumer Price Index (CPI) from the Bureau of Labor Statistics (BLS).
Table 2. Descriptive Statistics