A Medical Technology Index for Community Hospitals

This article creates a medical technology index to serve as a benchmark in strategic assessment of community hospitals. An expert panel assigned weights to the six components in the index. Empirical validation of the medical technology index is accomplished by using it as a single factor in predicting bond ratings of hospitals with significant findings. The index is used with 8 other factors in projecting returns on operating revenue for a 4-year period in a sample of 490 hospitals.