Return on Equity Model and Its Application to Hospital Strategic Management

병원의 재무상태 개선전략 수립을 위한 기본재산순이익율모형의 적용사례

It has been an issue in the field of hospital management to develope a systematic and comprehensive analysis frame for financial position. This study developed a return on equity(ROE) model that includes the components of financial profitability, activity, stability and growth with reference to that developed in the USA The application of the model was attempted to assess its feasibility using data collected from a general hospital that has long been in the red. The hospital's financial ratio were compared to those of another private hospital in the black and also to the average ratios values of the similar bed-sized hospitals. Factors that cause the financial deficit and the strategies that can help to reorient the management's financial decision-making together with requisite conditions for effective use of the model, were identified. This study concludes that the ROE model can be usefull when effective financial strategies of the private hospitals are to be formulated.