• Title/Summary/Keyword: Operating revenue

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An Analysis of Structural Relationships among Financial Indicators of Hospitals in Korea: Applying Structural Equation Modeling(SEM) (병원 재무비율 지표들 간의 구조적인 관계 분석)

  • Jung, Min-Soo;Lee, Keon-Hyung;Choi, Man-Kyu
    • Health Policy and Management
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    • v.18 no.2
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    • pp.19-38
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    • 2008
  • Financial ratios are key indicators of an organization's financial and business conditions. Among various financial indicators, profitability, financial structure, financial activity and liquidity ratios are frequently used and analyzed. Using the structural equation modeling(SEM) technique, this study examines the structural causal relationships among key financial indicators. Data for this study are taken from complete financial statements from 142 hospitals that passed the standardization audit undertaken by the Korean Hospital Association from 1998 to 2001 for the purpose of accrediting teaching hospitals. In order to improve comparability, ratio values are standardized using the Blom's normal distribution. The final model of the SEM has four latent constructs: financial activity(total asset turnover, fixed asset turnover), liquidity(current ratio, quick ratio, collection period), financial structure(total debt to equity, long-term debt to equity, fixed assets to fund balance), and profitability(return on assets, normal profit to total assets, operating margin to gross revenue, normal profit to gross revenue). While examining several model fit indices(Chi-square (df) = 178.661 (40), likelihood ratio=4.467, RMR=.11, GFI=.849, RMSEA=.157), the final SEM we employed shows a relatively good fit. After examining the path coefficient of the constructs, the financial structure of the hospital affects the hospital's profitability in a statistically significant way. A hospital which utilizes its liabilities, more specifically fixed liabilities, and makes a stable investment decision for fixed assets was found to have a higher profitability than other hospitals. Then, the standard path coefficients were examined to directly compare the influence of variables. It was found that there were no statistically significant path coefficients among constructs. When it comes to variables, however, statistically significant relationships were found. between. financial activity and. fixed. asset turnover, and between profitability and normal profit to gross revenue. These results show that the observed variables of fixed asset turnover and normal profit to gross revenue can be used as indicators representing financial activity and profitability.

Time Series Analysis on the Endogeneity between Quality of Internet Banking System and Business Performances of Banks (인터넷뱅킹시스템의 품질과 은행의 영업성과 간 내생성에 대한 시계열 분석)

  • Shim, Seonyoung
    • The Journal of Society for e-Business Studies
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    • v.18 no.4
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    • pp.169-193
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    • 2013
  • This study investigates time series data on internet banking systems and business performances for 5 large-scale banks : Kookmin, Woori, Hana, City, Shinhan. These banks have the common features that they merged with other banks around 2000, hence they experienced massive IS integration between banks. This study adopted VAR and VECM for identifying Granger causality between the quality of internet banking systems and the performances of banks(operating revenue and cost). The main results are as follows. First, internet banking system impacts positively on the revenues as well as costs of banks. Second, the improvement of internet banking system is instigated by cost part more than revenue part. Hence, the results imply that banks tries to reduce operating costs via internet banking systems, however the systems rather increased the costs of banks, although the systems increased operating revenues of banks too.

Factors Affecting the Operating Performance of General Hospitals (종합병원 수익성에 미치는 영향요인 분석)

  • Kim, Ji-Hyoung;Ha, Ho-Wook;Lee, Hae-Jong;Sohn, Tae-Yong
    • Korea Journal of Hospital Management
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    • v.10 no.3
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    • pp.45-66
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    • 2005
  • The purpose of this study was to analyze related factors affecting profitability on general hospitals(300-499 beds). The data were derived from survey by the Korean Hospital Association on 33 hospitals during 10 years (from 1993 to 2002). Profitability was measured by 3 ratios - net profit to total assets, normal profit to total assets and operating margin to gross revenue - as dependent variables. Independent variables were classified by general factors (ownership, number of bed, period of establishment, region), financial factors (total asset turnover, current ratio, liabilities to total assets, personnel costs per operation profit, material costs per operation profits), productivity index(number of daily patient per nurse), the score of quality assurance activity and the time lag score. Multiple regression model was used in this study. First, Number of bed, region was not statistically significant for profitability. But ownership was affect positively to normal profit to total assets and operating margin to gross revenue. Private hospitals had higher profitability than that of public hospitals Second, the score of quality assurance activity was not statistically significant to profitability. Third, Those hospitals having more daily patient per nurse had significantly higher profitability than the others. Fourth, Those hospitals having higher proportion in total asset turnover had significantly higher profitability than other hospitals. But liabilities to total assets and liquidity ratio had no difference to the profitability. Those hospitals having higher proportion in personnel costs and material costs per operation profits had significantly lower hospital profitability than others.

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A Revenue Allocation Model for the Integrated Urban Rail System in the Seoul Metropolitan (수도권 도시철도 수입금 정산 분석모형)

  • Shin, Seong-Il;Noh, Hyun-Soo;Cho, Chong-Suk
    • Journal of Korean Society of Transportation
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    • v.23 no.5 s.83
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    • pp.157-167
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    • 2005
  • Seoul metropolitan public transport reform results in the introduction of the semi-public operation and distance-based fare policies. With implementation of these policies, public transport revenue allocation has been (will be) evolved very complicated because the existing revenue allocation issues have not only been clearly solved, which is generated by the combined relationship among Korea Railroad Corporation (KRC). Seoul Metropolitan Subway Corporation (SMSC). Seoul Metropolitan Rapid Transit Corporation (SMRTC), and Incheon Rapid Transit Corporation (IRTC), but also the revenue allocation problem between bus and urban railroad-related organizations need to be considered in this combined framework. On top of that. based on the future plans such as the private sector's railroad construction plan(s), the light rail transit construction plans of several local governments and the join of remained bus lines of Seoul metropolitan areas, it is understood that the revenue allocation among public transport operating organization will become one of main issues of operation organization as well as local and central governments. As a basic approach for revenue allocation of public transport operation organizations, the purpose of this paper is to propose an integrated model applicable to estimate degree of service contribution in passenger carriage in the combined public transport network. With a hypothesis that the complete electronic card system is deployed, this paper supposes every passenger's loading and alighting stations is recordable. Thereby, this paper limits research scope as to Seoul metropolitan railroad area since used route(s) between origin and destination stations can not be traceded because transfer stations each passenger path through is not recorded. Each model proposed in the paper is as follows: 1. a generalized cost reflecting passenger's transfer behavior; 2.a K path model for determining similar routes between O-D; 3.an assignment model for loading O-D trips onto the detected similar routes using Logit Model.

A Study on the Ratio Analysis as a Tool for Evaluating Financial Performance (병원재정 평가를 위한 비율분석에 관한 연구)

  • Chae, Young-Moon;Yun, Jung-Hyun;Lee, Hae-Jong
    • Journal of Preventive Medicine and Public Health
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    • v.19 no.2 s.20
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    • pp.213-223
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    • 1986
  • Ratio analysis allows a hospital to evaluate its own performance over time and to compare its performance with that of other hospitals. For this study, three types of ratio analysis were conducted based on some data on hospitals in Massachusetts. First, Key ratios influencing financial performance were identified using discriminant analysis. Second, the financial structures of the teaching and the non-teaching hospitals were compared using ratios and multiple comparison method. Third, the effects of the prospective reimbursement law of the state on financial performance were examined using ratios and paired t-test. The purpose of the law is to reduce hospital costs by setting the revenue ceiling prior to the effective budget year. The findings of this study were as follows: 1) When hospitals were divided into three groups, according to their operating income, only profitability ratios showed a consistent difference among the groups. 2) In the discriminant analysis, five ratios were selected: current ratio, operating margin, return on assets, fixed assets turnover, and inventory turnover. They are the key ratios to be monitored periodically for the purpose of evaluating the financial performance of hospitals. 3) When teaching hospitals were compared with non-teaching hospitals, acid ratio, days of cash on hand, and inventory turnover were statistically significant before the law went into effect, whereas only fixed assets turnover and inventory turnover were significant afterward. Contrary to previous studies, profitability ratios of teaching hospitals were higher than those of non-teaching hospitals, although the differences were not statistically significant. 4) When the ratios between the two periods (before and after the law) were compared, three profitability ratios (operating margin, return on assets, and return on equity) were significant for teaching hospitals, whereas three activity ratios (total assets turnover, fixed assets turnover, current assets turnover) were significant for non-teaching hospitals. Furthermore, while both total operating revenue and expenses were decreased, net operating income was increased, due to a greater decrease in total operating expenses. This shows that the law can indeed, simultaneously, achieve both a reduction in costs as well as an improvement in the financial situation of hospitals.

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A Study on the cost allocation method of the operating room in the hospital (수술실의 원가배부기준 설정연구)

  • Kim, Hwi-Jung;Jung, Key-Sun;Choi, Sung-Woo
    • Korea Journal of Hospital Management
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    • v.8 no.1
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    • pp.135-164
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    • 2003
  • The operating room is the major facility that costs the highest investment per unit area in a hospital. It requires commitment of hospital resources such as manpower, equipments and material. The quantity of these resources committed actually differs from one type of operation to another. Because of this, it is not an easy task to allocate the operating cost to individual clinical departments that share the operating room. A practical way to do so may be to collect and add the operating costs incurred by each clinical department and charge the net cost to the account of the corresponding clinical department. It has been customary to allocate the cost of the operating room to the account of each individual department on the basis of the ratio of the number of operations of the department or the total revenue by each operating room. In an attempt to set up more rational cost allocation method than the customary method, this study proposes a new cost allocation method that calls for itemizing the operation cost into its constituent expenses in detail and adding them up for the operating cost incurred by each individual department. For comparison of the new method with the conventional method, the operating room in the main building of hospital A near Seoul is chosen as a study object. It is selected because it is the biggest operating room in hospital A and most of operations in this hospital are conducted in this room. For this study the one-month operation record performed in January 2001 in this operating room is analyzed to allocate the per-month operation cost to six clinical departments that used this operating room; the departments of general surgery, orthopedic surgery, neuro-surgery, dental surgery, urology, and obstetrics & gynecology. In the new method(or method 1), each operation cost is categorized into three major expenses; personnel expense, material expense, and overhead expense and is allocated into the account of the clinical department that used the operating room. The method 1 shows that, among the total one-month operating cost of 814,054 thousand wons in this hospital, 163,714 thousand won is allocated to GS, 335,084 thousand won to as, 202,772 thousand won to NS, 42,265 thousand won to uno, 33,423 thousand won to OB/GY, and 36.796 thousand won to DS. The allocation of the operating cost to six departments by the new method is quite different from that by the conventional method. According to one conventional allocation method based on the ratio of the number of operations of a department to the total number of operations in the operating room(method 2 hereafter), 329,692 thousand won are allocated to GS, 262,125 thousand won to as, 87,104 thousand won to NS, 59,426 thousand won to URO, 51.285 thousand won to OB/GY, and 24,422 thousand won to DS. According to the other conventional allocation method based on the ratio of the revenue of a department(method 3 hereafter), 148,158 thousand won are allocated to GS, 272,708 thousand won to as, 268.638 thousand won to NS, 45,587 thousand won to uno, 51.285 thousand won to OB/GY, and 27.678 thousand won to DS. As can be noted from these results, the cost allocation to six departments by method 1 is strikingly different from those by method 2 and method 3. The operating cost allocated to GS by method 2 is about twice by method 1. Method 3 makes allocations of the operating cost to individual departments very similarly as method 1. However, there are still discrepancies between the two methods. In particular the cost allocations to OB/GY by the two methods have roughly 53.4% discrepancy. The conventional methods 2 and 3 fail to take into account properly the fact that the average time spent for the operation is different and dependent on the clinical department, whether or not to use expensive clinical material dictate the operating cost, and there is difference between the official operating cost and the actual operating cost. This is why the conventional methods turn out to be inappropriate as the operating cost allocation methods. In conclusion, the new method here may be laborious and cause a complexity in bookkeeping because it requires detailed bookkeeping of the operation cost by its constituent expenses and also by individual clinical department, treating each department as an independent accounting unit. But the method is worth adopting because it will allow the concerned hospital to estimate the operating cost as accurately as practicable. The cost data used in this study such as personnel expense, material cost, overhead cost may not be correct ones. Therefore, the operating cost estimated in the main text may not be the same as the actual cost. Also, the study is focused on the case of only hospital A, which is hardly claimed to represent the hospitals across the nation. In spite of these deficiencies, this study is noteworthy from the standpoint that it proposes a practical allocation method of the operating cost to each individual clinical department.

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A Study on efficiency of the Korea National Railroad (우리나라 철도운영체의 효율성에 관한 연구)

  • 유재균;최진석
    • Proceedings of the KSR Conference
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    • 2000.11a
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    • pp.24-31
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    • 2000
  • This paper evaluates the efficiency of Korea National Railroad on the basis of revenues from 1980 to 1999. There was a significant inefficiency in this organization due to operating at an decreasing return to scale area. Although Korean Railroad in 1990s has made a great effort, his performance is still low. Consequently, it is important to insure substantiality of operations than to expand business area in order to finally improve the efficiency, in particular the revenue efficiency, of the Korea Railroad.

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A Study of Operating Technique to Maximize Power Sales Revenue for Wind Farm linked VRFB-ESS (VRFB-ESS 연계 풍력발전단지의 전력판매수익 극대화 운영기법 연구)

  • Ko, Ki-Bok;Kim, Kwang-Ho
    • Proceedings of the KIEE Conference
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    • 2015.07a
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    • pp.623-624
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    • 2015
  • 최근 산업의 발달로 전력소비량이 증가하면서 전력계통 주파수 안정화 및 전력평준화에 대한 대안으로 ESS에 대한 관심이 높아지고 있다. 이에 대해 출력변동이 심한 풍력발전에 배터리를 연계하여 운영하는 방법에 대한 연구가 활발히 진행되고 있다. 그러나 현재 국내에서는 ESS 연계 시 높은 초기자본비용과 ESS 운영방법에 대한 문제로 아직까지 활성화되지 못하고 있다. 따라서 본 논문에서는 ESS 연계 풍력발전단의 전력판매수익을 극대화하기 위한 운영기법에 대한 연구를 진행하였다.

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An Optimal Threshold Control in an Open Network of Queues (개방대기 네트웍에서의 최적 Threshold 제어)

  • Kim, Sung-Chul
    • Journal of Korean Institute of Industrial Engineers
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    • v.17 no.2
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    • pp.107-113
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    • 1991
  • This article develops a control model for an open queueing network in terms of both the input and the output processes with stochastic intensities. The input and the output intensities are subject to some capacity limits and optimum control is characterized by a threshold type with a finite upper barrier. A discounted profit is used as a decision criteria, which is revenue minus operating and holding cost.

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Analysis of Nursing Intensity Related to Nursing Activities in Operating Room using the Relative Value Scale For Nursing Cost (간호수가 산정을 위한 상대가치를 이용한 수술실 간호행위 간호강도 분석)

  • Ha, Ru Mee;Kwon, Kyoung Ja;Woo, Jin Ha;Kim, Jung A
    • Journal of Korean Clinical Nursing Research
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    • v.20 no.2
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    • pp.162-176
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    • 2014
  • Purpose: The purpose of this study was to perform an operating room nursing activities analysis and estimate nursing intensity of each nursing activity based on the Relative Value Scale (RVS). Methods: The methodology for this study of RVS was based on the work of Hsiao et al. The first stage was to identify nursing activities and the second to measure intensity of nursing activities including technical skill, mental effort, and stress. Results: Calculation of the RVS for 99 nursing practices showed a score range from 300.00 to 1337.78. CS operation assistant, OS operation assistant, and obtaining certification had high nursing intensity. Surgical hand washing, putting on surgical gowns, surgical gloves and surgical caps and mask had low nursing intensity. Conclusion: The activities of operating room are not compensated separately but reimbursement is usually included in physician fees. In the future, an estimation of nursing cost should show the nursing contribution rate to total operation revenue.