• Health Policy and Management
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• v.14 no.2
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• pp.1-16
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• 2004

The study purpose was to find which factors affect selection of hospital network types. This study used the 1998 American Hospital Association Annual Survey Database from Health Forum. Among these U.S. hospitals, the researcher selected hospitals located in Metropolitan Statistical Areas. Therefore the final observation cases for analysis are 1,971 Metropolitan Statistical Area hospitals in the United States. To identify significant variables influencing hospital network types, the study used proportional odds logistics regression model on population size, Health Maintenance Organization penetration rate, and market competition rate of area including a hospital, types of hospital ownership, hospital bed size, proportion of Medicare patients and Medicaid patients in total hospital patients, and occupancy rate. Contrary to conventional wisdom, selection of hospital network types was influenced by population size of area which a hospital located, types of ownership, hospital bed size, and proportion of medicare patients rather than Health Maintenance Organization penetration. Population size 1,000,000-2,499,999 had the highest probability of selecting type IV (clinical-vertical integration) from an independent hospital, and a religious group owned hospitals and for-profit owned hospitals had the highest probability of selecting Type IV (clinical-vertical integration) from an independent hospital. A bed size had positive relation on selecting Type IV (clinical-vertical integration) from an independent hospital. Unlikely general belief that the selecting types of hospital network was determined by the change of health insurance policy such as Health Maintenance Organizations and Preferred Provider Organizations, the types of hospital network were influenced by community characteristics such as population size, and hospital characteristics.

• Health Policy and Management
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• v.12 no.4
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• pp.1-17
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• 2002

This study was attempted to identify the liquidity trends and determinants of private hospitals in Korea different. Data used in this study were collected from 98 hospitals with complete general data of present conditions as well as financial statements(balance sheets, income statements). They were chosen from hospitals that passed the standardization audit undertaken by the Korean Hospital Association from 1996 to 2000 for the purpose of accrediting training hospitals. The dependent variables in this study were used current ration and quick ratio as a proxy indicator for liquidity. The independent variables were ownership type, hospital type, location, bed size, period of establishment, short-term liabilities to total assets, long-term liabilities to total assets, borrowings to total assets, fixed asset ration, net profit to total assets, operating margin to gross revenue, growth rate of net worth to total assets, total asset turnover, and business risk(volatility of profit). The major findings of this study were as follows. Trends of liquidity(current ratio, quick ratio) had been continuously decreased. Especially, There were very distinct decreasing trends of personal hospitals and less than 300beds, which weakened liquidity. The factors had significant effect on current ratio were short-term debt to total assets(-), fixed asset ratio(-), business risk(+). High short-term debt to total assets, high fixed asset ratio and high business risk significantly decreased in liquidity. The factors that significantly affected on quick ratio were short-term debt to total assets(-), borrowings to total assets(+), fixed asset ratio(-), business risk(+).

• Korea Journal of Hospital Management
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• v.27 no.3
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• pp.26-38
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• 2022

Purposes: We analyzed the profitability determinants of regional public hospitals during the entire period between 2010 and 2020 and the period before and after COVID-19. We intended to provide fundamental data for developing publicness evaluation index and task of establishing and expanding regional public hospitals. Methodology: The financial and non-financial information of the regional public hospitals were used as the main analysis data; The financial data was established by the Center for Public Healthcare Policy of National Medical Center, and the non-financial data by the Health Insurance Review and Assessment Service. T-test and regression analysis were used. Findings: The results can be summarized in two. First, the main determinants of profitability of the regional public hospitals were appeared to be the total asset turnover rate and the labor cost rate. Second, during the COVID-19 pandemic in the regional public hospitals, the number of sickbeds, the number of isolation rooms, the total asset turnover rate and the labor cost rate appeared to be the factor worsening the profitability. Practical Implication: The results of this study suggests that the management of the regional public hospitals is not aiming for the profit making, but it performs the functions as the community healthcare safety net such as controlling infectious diseases.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.7 no.2
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• pp.35-44
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• 2012

This paper provides information for decision making of the managers and the staffs of oriental medicine hospitals through the analyzing financial statement. The oriental medicine hospitals decreased total assets, total gross revenues, and increased debt. Comparison of years 2008 and 2010, oriental medicine hospital's total assets decreased, liabilities increased, total revenue decreased, and showed a continuing deficit. On the other hand, the rate of net worth of the oriental medicine hospitals were high and lower dependence on the borrowings. So the management performance of the oriental medicine hospitals as a whole were good. However some the oriental medicine hospitals were experiencing serious financial difficulties. In order to the hospitals overcome its financial difficulties, they had to rely on short-term borrowings. In consideration of the reserve fund for essential business, the transfers and the net profit ratio to total assets of the operating profit ratio to total assets were the level of commercial interest rates. But the operating profit ratio to the total assets were significantly different according to the hospitals. And 10 hospitals of the operating profit ratio to gross operating revenues were (-), they had problems with profitability. Meanwhile the total amount of capital and the equity capital of reduced hospitals increased, there were significant differences even between hospitals.

• Korea Journal of Hospital Management
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• v.8 no.1
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• pp.1-23
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• 2003

General drug prices involve three stages: shipment stage, wholesaler stage and retail stage. Policies on drug price differ from country to country. Shipment stage prices are tightly regulated in countries like France and Netherlands. They are free in only a minority of advanced countries, even if these include some major players such as the US, Germany and, in a very limited sense, Japan. The situation in the UK is very complex with a semi-free system, where drug companies are free to set their own prices but cannot exceed a predetermined profit ceiling. Mark-up at both wholesaler and retail stages is formally admitted in most countries observed. Apart from the general drug prices, reimbursement price of insured drugs has been major policy concerns. Most countries reviewed in this study has exerted some control over reimbursement prices, but differ both in the way how and in the extent to which prices are admitted or fixed. Price fixing has been used in France and Japan. Some countries have transformed their system over time, particularly to move to reference pricing in the last decade. This mechanism has empowered the customer, and improved price competition on the market. Referring to the drug price policies in the advanced countries, this study makes some suggestions for the redirection of Korean price policy for reimbursement drug in health insurance as follows: to match appropriate policy tools to each policy goal; to maximize market mechanism through effective reimbursement price fixing which admits mark-ups in wholesaler and retail prices; to introduce reference pricing system in order to redirect patient's demand with a financial incentive to choose the best-priced drugs and to save the finance of health insurance; and to strengthen surveillance and monitoring mechanism in the drug market.

• Journal of Home Health Care Nursing
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• v.18 no.1
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• pp.13-19
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• 2011

Purpose: The aim of this study was to evaluate patient satisfaction and indirect marketing effects (recommendation, hospital re-visit intention) and additionally to calculate the expected incomes by clinical nurse specialists (CNS). Methods: Sixty-six patients who had lower varicose vein removal surgery performed at two general hospitals from August 1 to November 30, 2008, were recruited. The effects were evaluated by degree of patient satisfaction, the number of personal recommendations given, rate of hospital re-visit intention, and indirect marketing effects. Indirect marketing effects were calculated as the total cost of surgery multiplied by the score of other variables. Results: The patient satisfaction score was 0.82 for CNS and 0.43 for general nurses (GN). The number of personal recommendations given was 2.5 for CNS and 1.1 for GN. The rate of hospital re-visit intention was 0.31 for CNS and 0.21 fot GN. The ratio of expected incomes between CNS and GN is 2.07 to 1. Conclusion: We found that when a CNS serves a patient, satisfaction, number of personal recommendations, hospital re-visit intention, and indirect marketing effects were higher than those of GN. These results show that CNS have dominant roles and functions and that the effects of CNS employment can be measured using economics parameters.

• Health Policy and Management
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• v.9 no.2
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• pp.21-39
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• 1999

An increasing number of hospitals are seeking for new or mixed compensation strategies to improve the productivity of their medical staff in the struggle to provide high quality medical services at low costs amid the economic hardship. To motivate physicians toward the right direction, it is necessary to effectively evaluate their performance that provides a basis for compensation. However, productivity has been historically difficult to measure, particularly for physicians in academic medical centers who are expected to engage in research, education, and patient care simultaneously. The objectives of this study were to define performance measures of physicians and clinical departments in academic medical centers. to examine correlations between the measures. and to investigate factors affecting the measures. The performance data of 212 faculty physicians in 17 clinical departments in two university teaching hospitals affiliated to one medical school during the fiscal year 1994 was used for analyses. Patient care revenue, net profit. and adjusted number of patients were defined to measure the performance in patient care. and number of articles published in academic journals and research grant were defined for research activities. Both individual physicians' performance measures and per physician measures of clinical departments were analyzed. All measures defined to evaluate individual physicians' performance were positively related to each other. Clinical department and rank of faculty position were statistically significant predictors of revenue. and hospital. clinical department. and rank were significant predictors of net profit. journal publication. and research grant. Patient care measures defined to evaluate clinical departments were related to each other. so were research measures. and no significant correlations were found between patient care measures and research measures. Also found were large differences in department. ranks when clinical departments were evaluated by absolute per physician performance measures and evaluated by annual rate of changes in performance measures. These findings suggest that departmental performance measures opposed to individual performance measures are relatively free from problems of factors affecting the performance measures that are not in control of clinical departments or individual physicians. Results from the correlation analysis of departmental performance measures indicates that measures of research performance should be included in the evaluation to promote research activities in academic medical centers.

• Journal of Internet Computing and Services
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• v.9 no.3
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• pp.59-67
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• 2008

New system solves scheduling problem in medical services. The existing scheduling system by FCFS is for a hospital but new system expresses the condition of a hospital and the profit of separate system's parties by the automated negotiation. This system expresses user preference time as a priority number and is designed that the schedule is changed according to the priority number with a negotiation strategy for a patient. And a hospital makes a schedule according to the policy. The system supports customer satisfaction in medical services by considering not only equipment efficiency but also the patent waiting time unlike the existing system considering the idle time for a equipment.

• Journal of Digital Convergence
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• v.13 no.11
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• pp.267-276
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• 2015

This study divided hospital management performance as surplus and deficit, Liquidity, Growth, Turnover Ratios, Productivity, Operating Expense, Patient Care Performance and evaluate the relationship between profitability. In addition to providing a useful basis for seeking profitability and effective management measures based on the findings of the hospital has its purpose. The study period was 2013 to identify the hospital's financial performance as evaluation criteria, were selected for a total of 147 hospitals surveyed. In conclusion, the more profitable medical and hospital financial performance, results showed a higher rate. In addition to the factors affecting the profitability of the Salaries, Administrative Expenses, Material Costs was a major factor. To to enhance the future profitability of hospital care it is also important to increase revenue, but Salaries, the cost reduction-effective strategy for reducing Administrative Expenses may be required.

• Health Policy and Management
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• v.23 no.2
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• pp.124-131
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• 2013

Background: This study aimed to measure the opportunity income by identifying the economic length of stay (ELOS) which is the intersection point of daily revenue and cost on appendectomy and pneumonia cases. Methods: The research subjects were 460 patients of appendectomy and 606 patients of pneumonia, discharged from a general hospital between July 1, 2009 and June 30, 2010. ELOS calculated with both of total revenue on diagnosis-related group (DRG) and fee-for service (FFS). The cost is calculated by activity-based costing system of the hospital. Results: Average length of stay (ALOS) of appendectomy was 4.48 days and its average revenue per case were 1,710,215 (1,989,105) won by DRG (FFS). The variable cost was 491,262 won which was 28.7% (24.7%) of DRG (FFS) total revenue. And 97.2% of the total variable cost was incurred within 2 days from admission. The ELOS was 4 (5) days in DRG (FFS). Shortening three days (two days) would increase opportunity income 52.0% (82.2%) in DRG (FFS). ALOS of pneumonia case was 4.86 days and its average revenue per case were 489,448 (761,426) won by DRG (FFS). The variable cost was 27,230 won which was 5.6% (3.6%) of DRG (FFS) total revenue. Thirty-eight point nine percent of the daily variable cost was incurred in discharge date. The ELOS was 2 (4) days in DRS (FFS). Shortening three days (one day) would increase opportunity income 27.6% (37.2%) in DRG (FFS). Conclusion: The ELOS would be used by strategic index for achieving minimum profit and developing the ways to get there. But we also should not pass over that the opportunity income obtained by the reducing ALOS may cause some problem of quality.