• The Korean Journal of Health Service Management
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• v.8 no.2
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• pp.1-10
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• 2014

This study examined nonpatient revenues of university hospitals in korea. The data source for this study was 22 university hospitals over the period 2010-2012. In this study, patient revenues, patient expenses, operating profit, nonpatient revenues, total revenues, operating margin, normal profit to gross revenues, ratio of the nonpatient revenues in the total revenues were analysed by the annual and three-year average. The analysis of nonpatient revenue differences by hospital type, bed size, location, management performance was performed by T-test and oneway ANOVA. The results were as follows. First, nonpatient revenues of university hospitals were increased during the period 2010-2012. Second, nonpatient revenues according to hospital type, bed size, location in the university hospitals had significant difference. Third, hospital type was significantly associated with normal profit to gross revenues which was profitability index about nonpatient revenues. Based on these results, this study suggests implications to diversify for management performance in hospitals.

• Health Policy and Management
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• v.15 no.1
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• pp.78-96
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• 2005

The purpose of this empirical study is to investigate whether costs are 'sticky' -that is, whether costs increase more when revenues rises than they decrease when revenues falls by an equivalent amount by using the financial data fromf korean general hospital Financial data used in this study were obtained from the Database of Korean Health Industry Development Institute and analyzed using multiple regression model in dummy variables. The main results of this study are as follows: First, we found, for 69 Korean general hospitals for 3 years(2000~2002), that total hospital costs, hospital labor costs, hospital administrative costs were sticky, these costs provided strong support for the sticky costs hypothesis 1, but hospital material costs were shown to be proportional to sales revenues. Second, this results provided strong support for the hypotheses that the' degree of stickiness was lower in sales revenues declining that were preceded by revenue-declining periods (hypothesis 2-1), and that stickiness was less pronounced in a second successive year of revenue decline(hypothesis 2-2). Third, this results provided strong support for the hypothesis(hypothesis 3) that stickiness was greater hospitals that employ relatively more people to support their sales revenues(hypothesis 4) that stickiness was greater for hospital that used relatively more assets to support their sales revenues. After all, a managerial implication of this study was that sticky cost, for the general hospital, could be recognized and controlled.

• Health Policy and Management
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• v.20 no.3
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• pp.123-137
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• 2010

The main purpose of this article is for deriving functions related to the prediction of the closure of the hospitals, and finding out how the discriminant functions affect the closure of the hospitals. Empirical data were collected from 3 years financial statements of 41 private hospitals closed down from 2000 till 2006 and 62 private hospitals in business till now. As a result, the functions related to the prediction of the closure of the private hospital are 4 indices: Return on Assets, Operating Margin, Normal Profit Total Assets, Interest expenses to Total borrowings and bonds payable. From these discriminant functions predicting the closure, I found that the profitability indices - Return on Assets, Operating Margin, Normal Profit Total Assets - are the significant affecting factors. The discriminant functions predicting the closure of the group of the hospitals, 3 years before the closure were Normal Profit to Gross Revenues, Total borrowings and bonds payable to total assets, Total Assets Turnover, Total borrowings and bonds payable to Revenues, Interest expenses to Total borrowings and bonds payable and among them Normal Profit to Gross Revenues, Total borrowings and bonds payable to total assets, Total Assets Turnover, Total borrowings and bonds payable to Revenues are the significant affecting factors. However 2 years before the closure, the discriminant functions predicting the closure of the hospital were Interest expenses to Total borrowings and bonds payable and it was the significant affecting factor. And, one year before the closure, the discriminant functions predicting the closure were Total Assets Turnover, Fixed Assets Turnover, Growth Rate of Total Assets, Growth Rate of Revenues, Interest expenses to Revenues, Interest expenses to Total borrowings and bonds payable. Among them, Total Assets Turnover, Growth Rate of Revenues, Interest expenses to Revenues were the significant affecting factors.

• The Journal of the Korea Contents Association
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• v.13 no.12
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• pp.348-356
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• 2013

This study examines nonpatient revenues of hospital in korea. The data source for this study was the 11 national university hospitals over the period 2008-2012. In this study, patient revenues, patient expenses, operating profit, nonpatient revenues, total revenues, ratio of the nonpatient revenues in the total revenues, operating margin, normal profit to gross revenues were analysed by the annual. The analysis of nonpatient revenue differences by management performance, bed size, location was performed. The results were as follows. Nonpatient revenues of national university hospitals were increased during the period 2008-2012. Nonpatient revenues were no significant differences by management performance. Nonpatient revenues in hospitals which are large bed size and located in big city were larger. Based on these results, this study suggests implications to diversify profitability for management performance in hospitals.

• Korea Journal of Hospital Management
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• v.18 no.3
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• pp.43-61
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• 2013

The purpose of this study is to analyze the relations between publicness and profitability of national university hospitals in Korea. Finance and management data from 2008 to 2010 were collected from balancing accounts and annual reports in 13 national university hospitals. The dependant variables are used profitability indicators which are operating margin, net profit to gross revenues, normal profit to gross revenues. The independent variables are publicness indicators which are medical social work, ratio of medical aid in inpatients, ratio of medical aid in outpatients, publicness index. The results show that operating margin, net profit to gross revenues in profitability indicators are affected by medical social work in publicness indicators. Normal profit to gross revenues in profitability indicators is strong related to medical social work and hospital province in publicness indicators. Based on these results, this study suggests implications to balance the publicness and the profitability in national university hospitals.

• The Journal of Korean Medicine
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• v.41 no.1
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• pp.1-10
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• 2020

Objectives: This study investigated the financial performance of Korean Medicine hospitals in Korea in order to understand the current status of hospital management and improve its efficiency. Methods: Financial statements of 24 medical corporations, 19 juridical foundations and 18 school hospitals from 2016 to 2018 were obtained from the secondary data published by the Health Insurance Review and Assessment Service, the National Tax Service and the Korea Advancing Schools Foundation. Financial performance was measured on 6 dimensions: liquidity, profitability, activity, growth, cost and productivity (investment efficiency) by analyzing 8 financial indicators: Liability to Total Assets, Net Profit to Patient Service Revenues, Total Assets Turnover, Growth Rate of Patient Service Revenues, Operating Expenses to Patient Service Revenues, Value Added to Patient Service Revenues, Value Added to Total Assets, and Value Added to Personnel Expenses. Results: Korean Medicine hospitals showed lower Liability to Total Assets, Liquidity and Value Added to Total Assets than Western Medicine hospitals did. They also showed higher Value Added to Patient Service Revenues and Value Added to Personnel Expenses than Western Medicine hospitals did. They also showed higher Value Added to Patient Service Revenues and Value Added to Personnel Expenses than those of Western Medicine hospitals do. The net profit decreased significantly (-50.8%) in 2018 whereas Patient Service Revenues increased (6.9%) for the same period due to Operating Expenses increase and Non-Operating loss. Conclusions: These findings suggest that the Korean Medicine hospital sector in Korea needs to improve liquidity and financial structure and to enhance profitability by reducing Personnel Expenses and generating Non-operating revenues in order to improve its investment efficiency and competitiveness.

• The Korean Journal of Health Service Management
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• v.9 no.3
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• pp.57-67
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• 2015

Objectives : This study has analyzed the relationship between DEA efficiency of costs-patient revenues, productivity per value added and management performance in mental hospitals. Methods : The relationship between DEA efficiency of costs-patient revenues, the productivity per value added and management performance were conducted with correlation analysis and logistic regression. Results : The DEA efficiency of costs-patient revenues had a significant causal relationship with the value added ratio to gross revenue indexing productivity per value added. On the other hand, it was revealed that the operating margin indexing management performance had a slightly significant causal relation with DEA efficiency of costs-patient revenues. Conclusions : The material costs should be focused on the management stability of mental hospitals, and known to the desirable management orientation for the higher efficiency of costs-patient revenues.

• Journal of Digital Convergence
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• v.18 no.1
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• pp.249-255
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• 2020

This study is to analyze the relations between management performance and publicness of national university hospitals. The data from 2015 to 2017 were collected from annual reports and balancing accounts in 13 national university hospitals. The results of the study were as follows. Publicness index was found to have a negative(-) effect on net profit to gross revenues, operating margin. Medical social work had a significant positive(+) effect on normal profit to gross revenues, net profit to gross revenues. According to the location of the hospitals, it was found to have a significant effect on the normal profit to gross revenues. It is necessary to evaluate different projects of national university hospital in the public sectors. Based on this, it is necessary to re-establish the role for the purpose of establishment.

• Korea Journal of Hospital Management
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• v.4 no.1
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• pp.147-170
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• 1999

This study was performed to assess the financial performance of medical institutions and examine the affecting factors in Taegu metropolitan and Kyungpook province. The major results are as follows ; The liability to total assets was significantly different according to the ownership type of medical institution. It was the highest in the case of juridical person having a special status. The total assets turnover and value added to total assets were significantly different according to the type of medical institution, period of establishment, and ownership type of medical institution. They were higher in the tertiary medical institution, in private hospital and university hospital, and they were increased with establishment period of medical institution. The growth rate of patient revenues were significantly different according to the type of medical institution, period of establishment, and the growth rate of adjusted inpatient days were significantly different by period of establishment. The return on assets and net profit to gross revenues were the highest in private hospital. Private hospital went into the black, but other hospitals went into the red figures. According to the multiple regression analysis for the net profit to gross revenues, ownership type, period of establishment, and management strategy of medical institution were significant It was higher in private hospital and medical institution with prospector management strategy, and it was increased with establishment period of medical institution. In multiple logistic regression analysis for the status of financial performance in medical institution, period of establishment, management strategy of medical institution were significant It was better in medical institution with prospector management strategy and longer period of establishment.

• Korea Journal of Hospital Management
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• v.9 no.2
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• pp.102-127
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• 2004

The objective of this study is to analyze a current trend of and relating factors on profitability of the Korean Public Corporation Medical Centers(KPCMCs, hereinafter, hospitals) in Korea. There are 34 hospitals in Korea as of 2004. Among these hospitals some are red ink hospitals, others are black inks in terms of profitability. Data were collected by Korea Health Industry Development Institute(KHIDI) Statistics for Hospital Management 2000-2002 and Ministry of Health and Welfare(MOHW) financial data of public hospitals which was planned to coordinate public health care services roadmap in the long run. The samples are 32 hospitals. Profitability was measured in the aspect of profit rate with normal profit to total assets, and normal profit to gross revenues as dependent variables in respective. Independent variables were classified by general factors, i.e., location, intern/resident training, period of opening, number of beds, and managerial factors(current ratio, fixed ratio, liability to total assets, total assets turnover, personnel costs, materials cost, administrative cost), and finally factors related to patient treatment(average length of stay, bed occupancy rate, admission ratio of outpatients). The methods of analysis are correlation and multiple regression analysis. This study shows firstly, a lot of hospitals are optimal current ratio. Hospitals in upper 100% current ratio are 81.2%. And the personnel cost in total costs are high. Secondly, the trend of normal profit to gross revenues of hospitals are deteriorating gradually. And lastly, as a result of multiple regression analysis, the factors had on significant effect on normal profit to total assets are fixed ratio(+), liability to total assets(-), bed occupancy rate(+), admissions of outpatients(+), etc. And the factors had on significant effect on normal profit to gross revenues are current ration(+), fixed ratio(+), personnel cost(-), administrative expenses(-), admissions of outpatients(+), etc. In conclusion, to improve the profitability of hospitals, the efforts to reduce personnel cost and average length of stay might be needed. And also beds utilization rate need to be increased.