Using Ratios to Measure Hospital Financial Performance: Can the Process be Simplified?

Counte, Michael A.; Glandon, Gerald L.; Holloman, K; Kowalczyk, James E.

doi:10.1177/095148488800100306

Cited by 10 publications

(6 citation statements)

References 7 publications

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“…A study by Cleverley and Rohleder (1985) applied factor analysis to 29 ratios of hospitals in the USA, and extracted a number of factors that fitted the sampled ratios. A similar study by Countee et al (1988) applied the factor analysis technique to a sample of 114 US hospitals. Five factors were extracted that were able to explain a very significant percentage of the variation in the examined ratios.…”

Section: Literature Reviewmentioning

confidence: 99%

Performance indicators of banks in a total Islamic banking system: the case of Sudan

Eljelly

Elobeed

2013

International Journal of Islamic and Middle Eastern Finance and Management

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PurposeThe purpose of this paper is to describe the common performance traits of banks operating in a whole Islamic banking system in Sudan. Sudan is among the few economies in which a whole Islamic banking system is in place.Design/methodology/approachNine banks representing the most active and large banks are used as a sample for this analysis. The study applied factor analysis to a large set of financial ratios that are commonly used in financial analysis of banks.FindingsThe study found that six factors are able to explain most of the variation of the financial ratios used in the study. These factors ranked according to the percentage of variation explained are: liquidity risk, coverage, efficiency (utilization), profitability, capital adequacy, and control. The study also tested for the stability of these factors over time and found that both the extracted factors and their loadings are stable over time.Practical implicationsThus, this study provides a reduced set of indicators of performance of Islamic banks that operate in a total Islamic banking system that may be beneficial to a large group of stakeholders and parties that have interest in Islamic banking.Originality/valueThis study provides an opportunity to interested researchers in the area of Islamic banks about an important aspect of a total Islamic banking system, such as Sudan.

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Section: Literature Reviewmentioning

confidence: 99%

Performance indicators of banks in a total Islamic banking system: the case of Sudan

Eljelly

Elobeed

2013

International Journal of Islamic and Middle Eastern Finance and Management

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“…However, the implementation of TQM principles in social care organizations implies changes and innovations in organizational cultures, tools and techniques to ensure active involvement and continuous professional improvement in the quality-of-service process (Ghența et al, 2014). In social care organizations, TQM is widely adopted to increase service efficiency, such as cost containment and effectiveness, as well as the quality and appropriateness of care (Counte et al, 1992). Because of its encouraging results in other industries, TQM has penetrated both health and social care organizations, overcoming to some extent the barrier to preventive actions (Malley et al, 2012).…”

Section: Quality In Social Care Ecosystems: a Gap To Fillmentioning

confidence: 99%

Managing TQM's soft side: an explorative study of social care multiservice organizations

Capolupo

Virglerová

Adinolfi

2023

TQM

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PurposeThis paper explores total quality management (TQM) soft domain efficacy in social care organizations to determine the extent to which an organization's project success may stem from soft TQM critical success factors (CSFs).Design/methodology/approachNon-structured interviews were conducted with 16 managers overseeing the prosthetic device regeneration project of the Italian local health unit (located in Salerno) to explore which soft factors could contribute to the success of a social care multifunctional organization.FindingsOrganizations' handling of certain projects, such as pivoting on soft TQM issues, may allow them to be configured as multiservice organizations. Therefore, a conceptual model of a multiservice social care organization is proposed.Practical implicationsFrom a managerial perspective, this study presents an interesting success case of a multiservice social care organization with a total annual expenditure of €20 million on prosthetic assistance. Preliminary data show a 13% reduction in public expenditure for Salerno's local health unit via a refurbishment project.Originality/valueThe paper contributes to the soft TQM literature debate: although Italian local health professionals appear aware of soft TQM issues' implementation and consciously apply them in their organization and projects, this occurs more with specific CSFs emerging from the literature. Therefore, this article paves the way for further quantitative and theoretical investigations on the adoption of TQM soft issues in social care organizations' performance measurement.

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“…We based our selection of financial indicators on Burkhardt and Wheeler (2013), Counte et al (1988), Karagiannis and Karagiannis (2018), Pink et al (2006), Watkins (2000), and Zeller et al (1996). Although some of them are not studies devoted to the health care sector, there are relevant hospital' indicators.…”

Section: Financialmentioning

confidence: 99%

Economic Analysis of Portuguese Public Hospitals Through the Construction of Quality, Efficiency, Access, and Financial Related Composite Indicators

2021

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Hospitals consume most of the health systems' financial resources. In Portugal, for instance, public hospitals represent more than half of the National Health Service debt and are decisive in their financial insufficiency. Although profit is not the primary goal of hospitals, it is essential to guarantee their financial sustainability to ensure users' health care and the necessary resources. An analysis of the existing literature shows that researches focus mainly on the hospital's technical efficiency. The literature has paid little or even no attention to the use of composite indicators in hospital benchmarking studies. This study uses the Benefit of Doubt methodology alongside recent data about Portuguese public hospitals (2013–2017) to understand the factors that contribute to low performance and high indebtedness levels. Our results suggest that hospitals perform better in terms of access (average score: 0.982). The group of criteria with the lowest performance was efficiency and productivity (average score: 0.919), suggesting resources waste. Financial performance is, in general, higher than quality, raising social concerns about the way that public hospitals have been managed. Findings bring relevant implications. For example, the way hospitals are currently financed should consider efficiency, productivity, quality, and access. Regulators should ensure that minimum performance levels are fulfilled, applying preventive and corrective measures to avoid future low-performance levels. We suggest that hospital managers introduce satisfaction inquiries to improve quality. These improvements can attract more patients in the medium- or long-term; thus, our results are useful to citizens to make a better choice.

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Using Ratios to Measure Hospital Financial Performance: Can the Process be Simplified?

Cited by 10 publications

References 7 publications

Performance indicators of banks in a total Islamic banking system: the case of Sudan

Performance indicators of banks in a total Islamic banking system: the case of Sudan

Managing TQM's soft side: an explorative study of social care multiservice organizations

Economic Analysis of Portuguese Public Hospitals Through the Construction of Quality, Efficiency, Access, and Financial Related Composite Indicators

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