• Korea Journal of Hospital Management
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• v.9 no.1
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• pp.66-94
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• 2004

The objective of this study is to examine how to maximize the efficiency of hospital management by minimizing the unit cost of hospital operation. For this purpose, this paper proposes to develop a model of the profit maximization based on the cost minimization dictum using the statistical tools of arriving at the maximum likelihood values. The preliminary survey data are collected from the annual statistics and their analyses published by Korea Health Industry Development Institute and Korean Hospital Association. The maximum likelihood value statistical analyses are conducted from the information on the cost (function) of each of 36 hospitals selected by the random stratified sampling method according to the size and location (urban or rural) of hospitals. We believe that, although the size of sample is relatively small, because of the sampling method used and the high response rate, the power of estimation of the results of the statistical analyses of the sample hospitals is acceptable. The conceptual framework of analyses is adopted from the various models of the determinants of hospital costs used by the previous studies. According to this framework, the study postulates that the unit cost of hospital operation is determined by the size, scope of service, technology (production function) as measured by capacity utilization, labor capital ratio and labor input-mix variables, and by exogeneous variables. The variables to represent the above cost determinants are selected by using the step-wise regression so that only the statistically significant variables may be utilized in analyzing how these variables impact on the hospital unit cost. The results of the analyses show that the models of hospital cost determinants adopted are well chosen. The various models analyzed have the (goodness of fit) overall determination (R2) which all turned out to be significant, regardless of the variables put in to represent the cost determinants. Specifically, the size and scope of service, no matter how it is measured, i. e., number of admissions per bed, number of ambulatory visits per bed, adjusted inpatient days and adjusted outpatients, have overall effects of reducing the hospital unit costs as measured by the cost per admission, per inpatient day, or office visit implying the existence of the economy of scale in the hospital operation. Thirdly, the technology used in operating a hospital has turned out to have its ramifications on the hospital unit cost similar to those postulated in the static theory of the firm. For example, the capacity utilization as represented by the inpatient days per employee tuned out to have statistically significant negative impacts on the unit cost of hospital operation, while payroll expenses per inpatient cost has a positive effect. The input-mix of hospital operation, as represented by the ratio of the number of doctor, nurse or medical staff per general employee, supports the known thesis that the specialized manpower costs more than the general employees. The labor/capital ratio as represented by the employees per 100 beds is shown to have a positive effect on the cost as expected. As for the exogeneous variable's impacts on the cost, when this variable is represented by the percent of urban 100 population at the location where the hospital is located, the regression analysis shows that the hospitals located in the urban area have a higher cost than those in the rural area. Finally, the case study of the sample hospitals offers a specific information to hospital administrators about how they share in terms of the cost they are incurring in comparison to other hospitals. For example, if his/her hospital is of small size and located in a city, he/she can compare the various costs of his/her hospital operation with those of other similar hospitals. Therefore, he/she may be able to find the reasons why the cost of his/her hospital operation has a higher or lower cost than other similar hospitals in what factors of the hospital cost determinants.

• Journal of the Korean Operations Research and Management Science Society
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• v.38 no.1
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• pp.15-27
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• 2013

Because consumers tend to have negative opinion about a company that neglects social issues like poverty or pollution while it focuses on its own profit, a lot of companies have invested their resources in Corporate Social Responsibility(CSR). CSR has merits of image improving and profit gaining, on the other hand, it has also many shortcomings. First, the cost of CSR may become a heavy financial burden. Specifically, CSR tends to be implemented by a company's unilateral backup, and then this may impose a heavy burden on the company. Second, one cannot expect effects of CSR in a short-term. Because of these shortcomings, the unilateral CSR has gone into alteration of the type of CSR since 1980's. Instead of unilaterality, Cause-Related Marketing(CRM) began to be used for mutual profits among company, consumers, and society. That is, CRM has become to be spotlighted as a new type of CSR. It focuses on partnership between a company and consumers based on cause and mutual profit pursuing through this partnership. So, many contemporary companies prefer CRM activities that derive their positive corporate image, that increase their sales, and that reduce their financial cost. The IBM Matching Grants Program, which is the largest of the IBM-Employee partnership programs, is a typical CRM. This program enables employees and retirees to increase the value of their donations to educational institutions, hospitals, hospices, nursing homes, and cultural & environmental organizations with a matching gift from IBM. Hundreds of educational institutions and thousands of nonprofit organizations have benefited from the contributions by IBM. There might be various types of matching grants. For example, an employee might choose a lump-sum expense or partitioning a lump-sum into a series of small ongoing expenses for his (or her) donation, and a firm might match the employee's total contribution with a lump-sum expense or might match the employee's total contribution with a series of small ongoing expenses. However, it is not easy to find an academic research on which type of matching grant is preferred by employees. This paper shows that an employee prefers the type of matching grants that consists of a lump-sum expense for his (or her) contribution and a series of small ongoing expenses for a firm's contribution [or the type of matching grants that consists of a series of small ongoing expenses for an employee's contribution and a lump-sum expense for a firm's contribution] to the other types of matching grants.

• Journal of Korean Academy of Nursing
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• v.40 no.1
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• pp.69-77
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• 2010

This methodological research was designed to develop performance evaluation key indicators (PEKIs) for management by objectives (MBO) and to estimate their weights for hospital nurses. Methods: The PEKIs were developed by selecting preliminary indicators from a literature review, examining content validity and identifying their level of importance. Data were collected from November 14, 2007 to February 18, 2008. Data set for importance of indicators was obtained from 464 nurses and weights of PEKIs domain was from 453 nurses, who worked for at least 2 yr in one of three hospitals. Data were analyzed using $X^2$-test, factor analysis, and the Analytical Hierarchy Process. Results: Based upon Content Validity Index of .8 or above, 61 indicators were selected from the 100 preliminary indicators. Finally, 40 PEKIs were developed from the 61 indicators, and categorized into 10 domains. The highest weight of the 10 domains was customer satisfaction, which was followed by patient education, direct nursing care, profit increase, safety management, improvement of nursing quality, completeness of nursing records, enhancing competence of nurses, indirect nursing care, and cost reduction, in that order. Conclusion: PEKIs and their weights can be utilized for impartial evaluation and MBO for hospital nurses. Further research to verify PEKIs would lead to successful implementation of MBO.

• Proceedings of the Korea Water Resources Association Conference
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• 2010.05a
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• pp.132-139
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• 2010

The river technology of Japan was highly developed and achieved much result in flood protection, water use and the environment. Nowadays, the function which is requested to the river is changes because the society changes from growth to maturity. In this study, we suggest the functions of the river in the maturity society about future welfare, medical care and education based on field research of case study. In this research, we pay attention to the functions related with culture, one) function of healing, mental stress improvement and life, two) function of landscape, education and recreation. And this paper proposed the usage of the river where adopt to the times, a function and the value of "the river as the space". We made a questionnaire to 187 river managers, and 90% of answers wear positive for use the river as the medical aspect, health and the welfare. Furthermore, based on research result of hospitals and welfare facilities which used a river for their activities, we suggest to develop and use the river walk, to design a city and rivers as one, and to use many facilities which are located on river front more active, those are improve the new river functions.

• Journal of Korean Academic Society 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.

• The Journal of Korean Society for Radiation Therapy
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• v.21 no.2
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• pp.57-65
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• 2009

Purpose: The purpose of this paper is to provide basic data in order to systemize the management of demand and supply of radiologic technicians, to pursue a fair regional distribution of educational institutions, and furthermore to keep reasonable medical treatment and fee. This research was carried out through the investigation of radiologic equipments and technicians according to the distribution of the population. Materials and Methods: We compared and analyzed the correlation between regional population, the number of clinics and hospitals, the number of medical imaging devices, and the number of radiologists and radiologic technicians in 5 cities without "Gu" administrative units in 2008. Results: 27,317 radiologic technicians have been produced since the administration of the national qualifying exam for radiologic technicians. About 18,000 radiologic technicians are currently working. There are 39 colleges or universities with Departments of Radiology and the admission quota is 2,120 students excluding one college. The ratio of radiologic equipments to radiologic technicians is 2.6 to 1. Conclusion: There is a dilemma in which some radiologic technicians fail to find appropriate jobs while some clinics or hospitals are in need of radiologic technicians. This dilemma is due to unreasonable regional discrepancies in pay system and welfare situation, and excessive profit-oriented recruiting system of clinics and hospitals. The increase of students of Radiologic Departments and approval of additional departments will end up with producing superfluous high academic degree holders, which is on the contrary to the government policy to produce more job opportunities. So the policy of increasing Radiologic Departments should be reconsidered.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.11 no.3
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• pp.1146-1152
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• 2010

The Korean healthcare industry is rapidly changing along with the competition among hospitals. In the past, hospitals could make profit without designing competitive management strategies. Thus, they did not find importance in listening to customers' voices and identifying their wants. However, nowadays, the increasingly intense competition is encouraging hospitals to seriously consider competitive management strategies and Customer Relationship Management (CRM) activities to gain a competitive advantage and prosper. It tries to compare the expected satisfaction with the satisfaction of out-patient and in-patient and analysis of VOC(Voice of Customer). This survey was done from 27th, April, 2009 to 8th May and each 100 in-patients and out-patients. The paired t-test and descriptive analysis was used to analysis between before and after satisfaction. The result, the replied out-patients were the highest of I.M department, 43% and in-patients, surgery and other department are the highest each 22.0%. Nurses kindness is statistical significant in out-patients. Doctor, Nurse and staff's kindness and rounding service was statistical significant in in-patients. Totally, the satisfaction was lower than expected satisfaction, so the medical care institutions should analyst detailed the patient's satisfaction by VOC.

• Journal of Korean Clinical Health Science
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• v.2 no.1
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• pp.1-16
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• 2014

Purpose. For a more efficient hospital management, this study aims to provide basic data so that the hospital management and staff in charge of hospital administration may systematically classify and collect hospital information, by analyzing the ordinary characters of an upper-level general hospital system and its common-type balance sheet, common-type profit and loss statement and financial ratio. Methods. By using information about an upper-level general hospital in C Province, provided by Alio(www.alio.go.kr), a public organization information provision site, Health Insurance Review & Assessment Service(www.hira.or.kr) and Ministry of Health and Welfare(www.mw.go.kr), this study analyzed 3 year's data from 2010 to 2012 and provided basic data by analyzing the ordinary characters of an upper-level general hospital system, and its common-type balance sheet, common-type profit and loss statement and financial ratio. Results. After analyzing the ordinary characters, common-type balance sheet, common-type proft and loss statement and financial ration of this general hospital, based on the 2010 to 2012 data, this study came to the following conclusions. Firstly, out of all the 1,069 hospital staff, there were 272 doctors working for 24 medical departments, out of whom the majority was 33 physicians. Most of the nurses were third-class ones, and about 2,000 outpatients and 600 inpatients on average were treated per day. Secondly, as a result of analyzing the common-type balance sheet, this study discovered that intangible assets out of fixed assets accounted for 41%, the majority, out of which usable and profitable donation asset buildings were of great importance, and the liquid assets increased more in 2012 than 2011. In the financial structure, the ratio of liquid liabilities was over 50% out of all the liabilities in 2012, and the ratio of purchase payables was high as well. The ratio of fixed liabilities reached up to 40%, out of which the retirement benefit appropriation fund was quite high. The capital was over 80%, but the surplus was in a deficit state. Compared to the capital, the ratio of total liabilities was about 90%, which indicates the financial structure of this general hospital was vulnerable. Thirdly, as a result of analyzing the common-type profit and loss statement, this study found out that the medical profits from inpatients were higher than profits from outpatients. The material cost was related to the medical quality of this general hospital, and it was as high as 30% out of the total costs and was about 45% of the labor cost. This general hospital showed 10% in the ratio of non-medical profits, and it seemed because of government subsidies. The ratios of medical profits and current net income were gradually changing for the better in 2012, compared to 2011. Lastly, as a result of analyzing the financial ratio, it was found that the liquidity ratio kept decreasing, from 110.7% in 2010 and 102.0% in 2011 to 77.2% in 2012. Besides, it was analyzed that the liquidity ratio and the net working capital ratio greatly decreased, while the quick ratio and the liquid ratio kept decreasing. Conclusions. 1. It is necessary to take the risk management into more consideration, and particularly, it is needed to differentiate and manage the levels of risk in detail. 2. By considering the fact that investments into hospital infrastructures were mostly based on liabilities, it is needed to deal with the scale of losses when evaluating risks. 3. By reflecting the character that investments into hospital infrastructures were based on liabilities, it is necessary to consider the ratio of ordinary profits as well as the ratio of operating profits to sales, and it is also important to consider sales productivity factors, such as the sales amount per a sickbed, by comparing them with other hospitals. As for limitations of this study, there may be some problems in terms of data interpretation because of the lack of information about the number of inpatients and the number of outpatients per year, which are needed for the break-even point analysis. Besides, to suggest a direction for the improvement of hospital management through analyses, non-financial factors should be reflected, such as the trend of economy, medical policies, and politic backgrounds. However, this study only focused on the common-type balance sheet, common-type profit and loss statement and financial ratio, so this study is actually limited to generalizing all the factors by analyzing public data only.

• Quality Improvement in Health Care
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• v.8 no.2
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• pp.218-231
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• 2001

Background : The purpose of this study was to investigate the understanding and the attitude of Korean hospital CEOs toward the healthcare quality improvement. Methods : A mailed questionnaire survey to the CEOs of hospitals with 400 beds or more was conducted between September 15 and October 30, 2000. Of the 108 hospitals eligible for the study, 58 participated, yielding a response rate of 54 percent. Result : The hospital CEOs have expressed that their hospital management was arduous job, and they had been pressured by increasing competitions among healthcare providers. They indicated that the low fees of health insurance made their hospital management difficult. The results also indicated that there was general consensus that the improvement of service quality was important in encouraging their organizations, but the investment of manpower and equipment ranked higher than the improvement of service quality. The majority of the CEOs have good understanding about quality improvement activities. However the facts that in general QI must be focused at the process of services and customer satisfaction, meanwhile quality improvement activities are helpful for the organizational productivity embarrassed them. The hospital CEOs responded that there were successful changes in terms of quality of care, patient satisfaction, and process efficiency after QI activities, but no increase in patient number and profit. Lack of understanding to QI activities and limited budget seem to attribute unsatisfactory outcomes. Conclusion : The majority of Korean hospital CEOs have a good understanding and attitude about QI activities. As mentioned in the result, despite of several limitations, several facts regarding the CEOs of hospital in Korean can be elucidated. (1) The general cognition of the QI project is relatively high, and it is accepted with positive concern, (2) the priority of the QI project, however, is not set higher than other projects and (3) the specific concepts of the actual QI project such as customer (patient)-focused work driving, the recognition of the work accomplishment, and the importance of rewards have not sufficiently understood.

• Information Systems Review
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• v.9 no.1
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• pp.45-65
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• 2007

In medical industry, health insurance bill audit is unique and essential process in general hospitals. The health insurance bill audit process is very important because not only for hospital's profit but also hospital's reputation. Particularly, at the large general hospitals many related workers including analysts, nurses, and etc. have engaged in the health insurance bill audit process. This paper introduces a case of health insurance bill audit for finding reducible health insurance bill cases using decision tree induction techniques at a large general hospital in Korea. When supervised learning methods had been tried to be applied, one of major problems was data imbalance problem in the health insurance bill audit data. In other words, there were many normal(passing) cases and relatively small number of reduction cases in a bill audit dataset. To resolve the problem, in this study, well-known methods for imbalanced data sets including over sampling of rare cases, under sampling of major cases, and adjusting the misclassification cost are combined in several ways to find appropriate decision trees that satisfy required conditions in health insurance bill audit situation.