Illinois Government Research no. 55 1982: Regulating Hospital Facilities Construction: The Illinois Experience 1975-1979

In the present political climate, reform or elimination of the certificate of need program is a distinct possibility. At the national level, the deregulatory movement has led to attacks on the program by officials in the Reagan administration, who claim it is ineffective in containing capital spending and impedes competition in the industry. In the 1980-81 session of the Illinois General Assembly, legislation was introduced that would have abolished the program. Although unsuccessful, the proposed bill reflects the controversy surrounding the program within the state. As the debate continues, at both the national and state level, it is a good time to examine the experience of the Illinois program. This article does that by analyzing the decisions made by the certificate of need program on hospital proposals from 1975 through 1979 and by examining some evidence of the program's impact. In the first section, we present an overall summary of the program's approval rate in terms of the number and percent of projects approved, withdrawn, denied, and modified; in the next section, we describe the types of projects which the program favors; and in the final section, we discuss some evidence of the program's impact on hospital bed supplies. The complex process by which CON decisions are reached in the state is not addressed in this paper so that we may focus on the results of the process and its possible impacts.published or submitted for publicatio

Managers’ Incentives to Manipulate Earnings in Management Buyout Contests: An Examination of How Corporate Governance and Market Mechanisms Mitigate Earnings Management

In an MBO contest, managers offer to buy the firm from public shareholders at a premium to the current market price and thus have incentives to buy the firm “cheap.” Prior studies have found evidence that managers, on average, manipulate earnings downward prior to an MBO offer in an attempt to convince shareholders that their offer is fair. We extend this finding by attempting to explain the substantial cross sectional variation in the degree of manipulation across firms reported in these earlier studies. We find that boards with more independent directors and higher levels of incentive based compensation for the CEO act to discourage such manipulation. Additionally, our results show that some shareholders, minority and preexisting large outside blockholders, appear to be misled by the manipulation. However, new blockholders that acquire large shareholdings in the year before the offer are not. We also discover that managers are more likely to revise their bid upwards when the manipulation is most severe and that these new blockholders put pressure on managers to make these revisions. Finally, we investigate whether the manipulation has an impact on the final buyout contest outcome. We find that downward manipulation does not prevent managers from retaining control of the firm; however, they pay a higher premium

Cost-effective HPC clustering for computer vision applications

We will present a cost-effective and flexible realization of high performance computing (HPC) clustering and its potential in solving computationally intensive problems in computer vision. The featured software foundation to support the parallel programming is the GNU parallel Knoppix package with message passing interface (MPI) based Octave, Python and C interface capabilities. The implementation is especially of interest in applications where the main objective is to reuse the existing hardware infrastructure and to maintain the overall budget cost. We will present the benchmark results and compare and contrast the performances of Octave and MATLAB