• Health Policy and Management
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• v.13 no.3
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• pp.52-70
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• 2003

The rate of conversion to Medical-juridical-persons' ownership of medical institutions has increased rapidly since its start in 1970s in Korea. The most sensitive issue to introduce for-profit medical institutions, ignited particularly by the WTO/DDA negotiations, has sparked considerable debate, stemming largely from conflicting views on the theoretical effects of ownership status on organizational behavior. This study surveyed health-related experts' opinions on allowing for for-profit-firms-owned medical institutions. Some fear that the obligation to maximize the share-holders' return on their investment will cause the medical institutions to eliminate necessary but less lucrative services. They may easily fall under more pressure to generate income, and respond more aggressively than not-for-profit medical institutions to financial pressures. Advocates of for-profit ownership of medical institutions argue that greater responsiveness to the demands of the marketplace will lead to larger investment, higher quality and lower costs to consumers. Referring to both foreign countries' experience and domestic experts' opinions, this study suggests for reform of the current Korean Medical-Juridical-Person(MJP) System. Introduction of so-called “Capital-investment” MJPs is recommended where the properties left in case of their dissolution can be distributed to original investors according to the procedures stipulated in their statutes. However, their annual profits are not allowed to be allocated to investors, but should be reinvested for their medical institutions, as is the case in current MJPs. Their legal aspects are also reviewed in this study.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.25 no.5
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• pp.9-14
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• 2002

A capital investment problem is essentially one of determining whether the anticipated cash inflows from a proposed project are sufficiently attractive to invest funds in the project. The net present value(NPV) criterion and internal rate of return(IRR) criterion are widely used as means of making investment decisions. A positive NPV means the equivalent worth of the inflows is greater than the equivalent worth of outflows, so, the project makes profit. Business people are familiar with rates of return because they all borrow money to finance ventures, even if the money they borrow is their own. Thus they are apt to use the IRR in preference to the NPV. The IRR can be defined as the discount rate that causes the net present value of a cash flow to equal zero. Why the project are accepted if the project's IRR is greater than the investor's minimum attractive rate of return\ulcorner Against the NPV, the definition cannot distinctly explain the concept of the IRR as decision criterion. We present a new definition of the IRR as the ratio of profit on the invested capital.

• Journal of the Korea Society for Simulation
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• v.13 no.1
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• pp.41-50
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• 2004

The purpose of this paper is to analyse the manager's policy to maximize the profit in a multiple-server queueing facility with a limited queue capacity. We assume that the level of advertizing effects on the arrival rate of customers to the facility. The model without ‘word of mouth effect’ is assumed that the arrival rate is independent on the qualify of service level. We estimate the service quality by the balking rate of customers from system. We extend this to the model with ‘word of mouth effect’. To achieve the maximum profit, the most important factor is the considerably high utilization of facility for both models. Given service rate, we should maintain an effective arrival rate to some extent. To this end, among the available options, an increase of advertizing effort is more desirable than reducing the fee if the service value of customers remains unchanged. We also investigate whether the variability of service time has a significant impact on determining the optimal policy. The cost of service variability is not so expensive as that in a single server model due to the reduced variability of service times in a multiple-server model.

• Management & Information Systems Review
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• v.17
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• pp.107-133
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• 2005

The purpose of this study was to analyze a trend of profitability classified by characteristics of hospitals and to analyze related factors. The data for this study were derived from survey material conducted by the Korean Hospital Association on 33 hospitals in Korea between 1993 and 2002. Profitability was measured in the aspect of investment profit rate and operation profit rate with 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 beds, period of establishment, region), financial factors (total asset turnover, liabilities to total assets, current ratio, fixed ratio, inventories turnover, personnel costs per operation profit, material costs per operation profits), composition of manpower and facilities(personnel and area per beds), productivity index(the number of daily patients per medical doctor, the number of daily patients per nurse), the score of quality assurance activities. First, Concerning the specialists per beds or area per beds and profitability of hospitals there was not statistically significant. Second, Those hospitals having the most daily patients per nurse had significantly higher profitability than the others, but the number of daily patients per medical doctor had little effect on the profitability. Thirds, Those hospitals having a higher proportion total asset turnover tended to show significantly higher profitability compared to other hospitals, but the liabilities to total assets and liquidity ratio had a little difference to the profitability. Those hospitals having a higher proportion personnel costs per operation profit and material costs per operation profits tended to show significantly lower hospital profitability compared to other hospitals. Fourth, In regression analysis, hospital profitability had negative relationship with personnel costs per operation profit or material costs per operation profits. While it had positive relationship with total asset turnover, the number of daily patients per nurse. In conclusion, private hospitals had higher profitability than that of public hospitals. Though factors related to profitability of hospital were different according to ownership, it is important for securing appropriate profitability by operating appropriate number of nurse, raising total asset turnover, and reducing personnel costs, material costs per operation profits. This study can be used as a baseline data for planning of hospital management. But the study may be limited in that the results cannot be generalized due to its small sample size. However, this longitudinal observation of 33 hospitals over ten year period has significant merit alone.

• Industrial Engineering and Management Systems
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• v.13 no.1
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• pp.52-66
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• 2014

Promotion of a closed-loop supply chain requires disassembly systems that recycle end-of-life (EOL) assembled products. To operate the recycling disassembly system, parts selection is environmentally and economically carried out with non-destructive or destructive disassembly, and the recycling rate of the whole EOL product is determined. As the number of disassembled parts increases, the recycling rate basically increases. However, the labor cost also increases and brings lower profit, which is the difference between the recovered material prices and the disassembly costs. On the other hand, since the precedence relationships among disassembly tasks of the product also change with the parts selections, it is also required to optimize allocation of the tasks in designing a disassembly line. In addition, because information is required for such a design, the recycling rate, profit of each part and disassembly task times take precedence among the disassembly tasks. However, it is difficult to obtain that information in advance before collecting the actual EOL product. This study proposes and analyzes an optimal disassembly system design using integer programming with the environmental and economic parts selection (Igarashi et al., 2013), which harmonizes the recycling rate and profit using recyclability evaluation method (REM) developed by Hitachi, Ltd. The first stage involves optimization of environmental and economic parts selection with integer programming with ${\varepsilon}$ constraint, and the second stage involves optimization of the line balancing with integer programming in terms of minimizing the number of stations. The first and second stages are generally and mathematically formulized, and the relationships between them are analyzed in the cases of cell phones, computers and cleaners.

• The Korean Journal of Health Service Management
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• v.11 no.3
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• pp.1-11
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• 2017

Objectives : The purpose of this study was to analyze factors affecting the performance of public hospitals in South Korea. Methods : We collected management performance data from 2013 to 2015 from income statements, balance sheets, and annual reports from 32 local public hospitals. The dependent variable used was profitability, which included operating margin, return on assets and net profit to gross revenues. The independent variables were general characteristics, liquidity, stability, and activity. Results : Patient revenues, total assets, and total capital had increased steadily but patient expenses had increased to a greater extent. Operating profit, and net profit were consistently in deficits and the management status of local public hospitals had recently been in difficulty. The debt ratio, quick ratio, ratio of fixed liability and fixed assets turnover rate have a significant positive(+) effect on performance in the years 2013-2015. Conclusions : We suggest management strategies for these hospitals based on the results analyzed.

• Asian Journal of Innovation and Policy
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• v.10 no.3
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• pp.330-354
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• 2021

To know the long-term growth patterns and determinants of successful startups, 15-year (2006-2020) panel data of 252 companies that had a growth rate of over 20% every year in the last three years were used. In the first analysis, statistics on the period required to designate a gazelle company or listed on the stock market were examined. In addition, five long-term growth patterns were presented. In the panel analysis, the R&D intensity, operating profit ratio, size, and age of the company were pointed out as determinants of growth. The operating profit margin and R&D intensity have a positive effect on growth. Gibrat's law was not supported, but an inverted U-shape was observed. Jovanovic's law was confirmed. Although many studies tend not to point to profitability as a determinant of long-term growth, this is an important long-term growth factor of a company. The operating profit ratio was used in this study.

• Proceedings of the KSR Conference
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• 2001.10a
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• pp.83-90
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• 2001

Generally, fare system is divided diminishing fare rate to distance into proportional fare rate to distance. In this paper, it is simulated the financial effect on the HSR operator introduced the diminishing fare rate to distance system. The diminishing fare rate to distance system increase the railroad demand, so profit of HSR operator is increased. We find that the diminishing fare rate to distance system is better than proportional fare rate to distance system.

• The Journal of Fisheries Business Administration
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• v.31 no.2
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• pp.133-153
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• 2000

During the last several decades, Korea has been regarded as one of the fastest growing economies in the world. However, the small size of national land has not met the vigorous demand for land necessary to develop economic infra-structures such as large-scale harbors airports and highways. In order to satisfy the growing demand for land, the Korean government and industry have implemented the national land development programs to reclaim land from the sea fur the several decades. It is certain that these land development programs have resulted in a lot of property disputes between fishermen and public project administrators. This paper is to develop a quantitative model to estimate compensation for damages or restriction of charted fisheries resulting from large-scale public projects. In this paper, the compensation model is derived by using cost-volume-profit analysis framework because the compensation for charted fisheries basically depends on the factors such as the costs, production volume, profit of charted fisheries damaged or restricted by public projects. The model shows that the compensation for damages or restriction of charted fisheries is determined by the average annual profit, damage duration period, and the degree of fishery damages. In addition, the degree of fishery damages measured by the ratio of lost profit to annual average profit turns out to be determined by the following factors: annul profit, unit variable cost, decrease in production volume, the rate of increase in variable cost, and a change in fixed cost. Furthermore, this parer discusses the nam issues related to practices and regulation of the compensation for fishery damages in the current Fishery Act of Korea and suggests some appraisal methods which will be able to lead to theoretically correct and fair compensation for fisheries damages resulting from large-scale public projects.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.38 no.3
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• pp.95-99
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• 2015

The IRR(internal rate of return) is often used by investors for the evaluation of engineering projects. Unfortunately, it has serial flaws: (1) multiple real-valued IRRs may arise; (2) complex-valued IRRs may arise; (3) the IRR is, in special cases, incompatible with the net present value (NPV) in accept/reject decisions. The efforts of management scientists and economists in providing a reliable project rate of return have generated over the decades an immense amount of contributions aiming to solve these shortcomings. Especially, multiple internal rate of returns (IRRs) have a fatal flaw when we decide to accep it or not. To solve it, some researchers came up with external rate of returns (ERRs) such as ARR (Average Rate of Return) or MIRR (MIRR, Modified Internal Rate of Return). ARR or MIRR. will also always yield the same decision for a engineering project consistent with the NPV criterion. The ERRs are to modify the procedure for computing the rate of return by making explicit and consistent assumptions about the interest rate at which intermediate receipts from projects may be invested. This reinvestment could be either in other projects or in the outside market. However, when we use traditional ERRs, a volume of capital investment is still unclear. Alternatively, the productive rate of return (PRR) can settle these problems. Generally, a rate of return is a profit on an investment over a period of time, expressed as a proportion of the original investment. The time period is typically the life of a project. The PRR is based on the full life of the engineering project. but has been annualised to project one year. And the PRR uses the effective investment instead of the original investment. This method requires that the cash flow of an engineering project must be separated into 'investment' and 'loss' to calculate the PRR value. In this paper, we proposed a tabulated form for easy calculation of the PRR by modifing the profit and loss statement, and the cash flow statement.