The influence of financial performance on marketing expenditures among U.S. hospitals participating in the Medicare program.

Abstract

The Centers for Medicare and Medicaid Services (CMS) require hospitals participating in these programs to submit an annual Medicare Cost Report (MCR). This information is utilized to set rates, regulations, and future payment models. CMS defines marketing expenditures as non-reimbursable. Prior research has evaluated the influence of marketing expenditures on financial performance, but not the reverse. This analysis evaluates the influence of this reverse lens, as well as the influence of provider type. Although the results of this analysis determine significance for these constructs, the variance explained is minimal. Therefore, further research is needed to determine additional factors influencing marketing decisions.