Theses and Dissertations

Date of Award


Document Type


Degree Name

Master of Business Administration (MBA)



First Advisor

Dr. Monika K. Rabarison

Second Advisor

Dr. Bruno R. Arthur

Third Advisor

Dr. Salvador Contreras


The health industry is affected by economic factors like income and prices. From 2007 to 2013, two turning points affected the healthcare industry, the financial crisis and the Affordable Care Act. This study is an attempt to measure the effects these turning points had on profitability of health services firms. To examine the potential changes the two events had on profitability, quarterly financial data was used to create a basic model that measures the Return on Assets, Return on Equity, Total Margin and Operating Margin of the firms. OLS regressions were run and results indicate that both ROA and ROE decrease after the enactment of the ACA. ROE is also negatively affected by the crisis period. These findings suggest that health care profitability was indeed affected by the two events. Overall, results demonstrate that ACA should be improved to prevent further deterioration of the industry


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