Do Changes in Hospital Ownership Affect Staffing?

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In the brief, Do Changes in Hospital Ownership Affect Staffing Ratios? the NC Rural Health Research Program examines whether hospital ownership changes—specifically transitions between government or nonprofit ownership and for-profit status—are associated with differences in staffing levels, an important indicator of care quality and local economic impact.

Using CMS HCRIS data from 2011–2023, we analyzed 1,917 hospital-year observations from 162 rural hospitals that experienced an ownership change.

In rural hospitals, for-profit ownership was associated with lower staffing ratios in some regression models, suggesting potential implications for patient care. However, a difference-in-differences analysis including both rural and urban hospitals found no significant relationship between ownership conversions and staffing ratios.

Due to mixed findings and a small sample of converting hospitals, results should be interpreted cautiously. Future research is needed to understand how contextual factors—such as financial performance or the circumstances surrounding ownership change—shape workforce impacts.