Financial Ratio Analysis for Developing Nursing Management Strategies in University Hospitals

Analysis of Hospital Management based on the Characteristics of Hospitals: Focusing on Financial Indicators

“…However, on reviewing the comprehensive analyses performed by earlier studies and institutional reports on organizational performance of hospitals focusing on financial indicators, we find that the number of beds, workforce, indicators related to employees, utilization, employee efficiency, and ownership significantly influence a hospital's organizational performance and affect its financial indicators (Marquis and Huston, 2011;Lim et al, 2013). Financial indicators are variables that account for the performance of hospitals because they are calculated by considering data concentrated on management activities; further, they are variables that reflect the characteristics of healthcare organizations (Kang et al, 2014).…”

“…tourism emphasizes the structural and conscious changes that are taking place in hospital management to satisfy the expectations of domestic and overseas medical consumers. However, today, various internal and external factors affecting the healthcare environment are causing deterioration in the profitability of medical institutions, the demands of consumers are diversifying, and governmental policies are continually aggravating the management of healthcare organizations (Hong and Lee, 2018;Lee, 2018;Lim et al, 2013;Nowicki, 2007).…”

“…However, the financial ratio analysis does not reveal the most important measure among all the analytical indicators, and the most important ratio cannot be identified by imply aggregating all the ratios. Therefore, to effectively use the financial ratio analysis, a comprehensive assessment should be performed by selecting the major proportion of these rates that affect the efficiency and effectiveness of hospitals (Kang et al, 2014;Lee, 2015Lee, , 2016Lim et al, 2013;Nowicki, 2007).…”

Nursing Productivity of Tertiary General Hospitals using Financial Statements

“…This accounting system provides formulae to perform financial ratio analysis using four categories: liquidity, performance, turnover, and growth. Liquidity is a category to determine the soundness of hospital capital structure and the adequacy of the fund operation, utilizing the indicators such as current ratio, liability to total assets, and net asset to total assets [12][13][14]. In this study, liability to total assets and current ratio indicators were considered to analyze liquidity.…”

“…In this study, liability to total assets and current ratio indicators were considered to analyze liquidity. Performance category is assessed by indicators such as return to assets, net profit to total assests, and net profit to gross revenues [12][13][14]. In this study, we analyzed the data using net profit to total assets and net profit to gross revenue indicators.…”