Analysis of influencing factors of indebtedness in Chinese private hospitals

This study aims to analyze how the indebtedness of Chinese private hospitals is influenced by hospital-specific variables, corporate governance variables, and macroeconomic variables. This study collects panel data from 13 Chinese private hospitals listed on the Shanghai and Shenzhen stock exchanges from 2012 to 2023 and uses the first difference fixed effects models. The level of indebtedness is measured through total, short-term, and long-term debt. Statistical significance is assessed using a threshold of P  < .05 (2-tailed) for all analyses. The results show that employee expenses have a negative impact on short-term debt and a positive impact on long-term debt. Current ratio and growth rate of gross domestic product negatively influence total and short-term debt. In addition, no statistically significant impact is found between hospital size and corporate governance and the indebtedness of Chinese private hospitals. This study may enhance hospital managers’ awareness of debt levels while providing evidence-based strategies to optimize capital structure decisions.