• Korea Journal of Hospital Management
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• v.21 no.1
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• pp.32-42
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• 2016

This study is conducted to estimate economic ripple effects of subsidiary services of hospitals. Using the Input/Output Analysis, this study analyzes production inducement effect, added value inducement effect, and labor inducement effect. Also, it assesses potential economic effects of the subsidiary services of which the scope is expanded as the government's proposed in 2014. Data regarding hospital subsidiary services and economic effects are obtained from the hospitals' financial statements on the National Tax Services and the Bank of Korea. The major results of this study are summarized as follows; subsidiary service profits of hospitals are 466 billion won and rent profits of hospitals are 152 billion won. Of these, the rate of subsidiary service profits in tertiary hospitals is about 66% of total subsidiary service profits. Producement inducement effect of subsidiary services of hospitals is higher than that of total industry, service industry and medical service industry. Added value inducement effect of subsidiary services of hospitals is higher than that of total industry, manufacturing industry, service industry and medical service industry. Job position inducement effect of subsidiary service in hospitals is higher than that of total industry, service industry and medical service industry. Also, employment inducement effect of subsidiary service in hospitals is higher than that of total industry and medical service industry. The results may suggest that subsidiary services revenue in medical institutions contribute to improving operating profits. Facing with intense market competition and pressures to control health care costs, hospitals may need to determine whether subsidiary services help boost their profitability and improve customer satisfaction.

• Korea Journal of Hospital Management
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• v.7 no.2
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• pp.124-135
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• 2002

The purpose of this study is to analyze a case of unit management system introduced and operated in a university hospital. The system was designed and applied to six clinical departments and centers to help to achieve the medical revenue and profit targets. The case hospital is now in the second year of the system operation. Major findings of the study are as follows; Firstly, the leadership style of the unit manager is the most important factor in management of the unit. The transformational leadership style was more effective than the transactional one. Secondly, unit manager's managerial ability is another key factor to the success or failure in achieving the responsibility targets. Thirdly, the degree of divisionalization and responsibility should be strengthened to activate both unit managers and medical specialists.

• Korea Journal of Hospital Management
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• v.17 no.1
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• pp.79-112
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• 2012

The purpose of this study is to examine the differences of profitability based on the analysis of business and medical service performances of four hospitals in Incheon area with similar size. and to compare hospitals with the best and the worst performances and analyze the factors behind the differences. The differences could be caused by differences in medical service statistics, number of staff, and financial results, etc. The data was acquired through the homepage of the National Tax Service(financial statements for the fiscal year 2009) and the Medical Record Association of Incheon(medical service statistics for the years 2008 and 2009) along with questionnaire survey to the hospitals(personnel data for the year 2009). The results of the study are as follows. Medical profits to medical revenues ratio for the hospitals(referred as Hospital A, B, C, and D) shows, in order, C(8.2%), A(8.0%), B(7.8%), and D(7.4%). However, net income to medical revenues ratio shows otherwise: C(8.5%), D(5.8%), A(3.0%), and B(0.6%). Hospital B shows a high medical profit to revenue ratio but the lowest net income to revenue ratio due to large interest expenses. The leverage ratio of Hospital B is the highest (419.6%), resulting in a very low interest coverage ratio(1.1). On the other hand, Hospital C shows favorable results in both profit ratios, with 8.2% and 8.5% each. Hospital C has the lowest leverage ratio(53.0%) and the highest interest coverage ratio(34.9). Therefore, the results show Hospital C has the best performance while Hospital B the worst. The two hospitals(B and C) show similar results in certain areas and big differences in other areas. The area that has the biggest influence on financial results turns out leverage ratio. Hospital B shows 'very good' to 'good' results in terms of medical service statistics in general. However, the leverage ratio is too high and the liquidity ratio too low, resulting in a very low profit ratio. The results of this study have some limitations in terms of generalization as only four hospitals in Incheon area were selected for the study, resulting in a deficiency in the representativeness of the sample. Further studies with bigger sample size and deeper analysis are expected in this area.

• 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.

• Korea Journal of Hospital Management
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• v.7 no.4
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• pp.152-171
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• 2002

The research objective is segmenting outpatients for CRM(Customer Relationship Management) in medical service. Using modified RFM(Recently, Frequency, Monetary) method based on frequency and profitability in the hospital, the data were analyzed with the data mining technique. The result can be summarized as follows : The outpatients were semented into the four groups: 1) the loyal patient group, who have kept visiting until recently and give high profitability; 2) potential loyal patient group, who give lower profitability but high frequency of use, 3) potential withdrawer patient group, who have lower frequency of use but give high profitability and; 4) withdrawer patient group, who give low frequency of use and have not visited recently.

• Korea Journal of Hospital Management
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• v.4 no.1
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• pp.129-146
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• 1999

The overall objective of this article is to identify the strategic type of Korean hospitals in terms of Porter's framework and to examine differences in performance of the hospitals across strategic types. A survey was conducted through structured questionnaire for 739 hospitals in Korea and the data from 120 hospitals were utilized in the final analysis. Study results indicate that the most frequently used strategy was 'stuck-in-the-middle strategy'(26.7%), followed by 'focused cost leadership strategy'(24.0%), 'focused differentiation strategy'(20.8%), 'cost leadership strategy'(15.8%), and 'differentiation strategy'(13.7%). Overall, 'focused differentiation strategy' showed superior performance in terms of profitability of services, ability to retain patients and growth in revenue, while 'differentiation strategy' produced relatively low performance in general. Implications of these findings are also discussed.

• Korea Journal of Hospital Management
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• v.17 no.4
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• pp.21-31
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• 2012

This is a case study of Gangnam S University Hospital applying a par level transfer system for reagent materials. The purpose of this study is evaluated on the cutting down on inventory expenses and medical service revenue in the point of resource based view. The data was acquired through the financial statement of Gangnam S Hospital for the fiscal year 2008, 2009, 2010 and 2011, and compared with the Korea health industry statistics index for hospital accounts based on the materials in Korea Health Industry Development Institute. The results of the study are as follows. Medical reagent materials expenditure cut down as 305 million won through 2009 fiscal year. Medical profits for the Gangnam S University hospital's income statement in 2011 show well over acquired 3.37 billion won through the enlarged diagnostic test numbers. In conclusion, Gangnam S University Hospital health statistics's index shows very high profits. The results of this study have some limitations in terms of generalization as only one hospital in Seoul. Further studies with relationship inventory performance and enlarged reagent materials are expected in this area.

• Korea Journal of Hospital Management
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• v.2 no.1
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• pp.183-202
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• 1997

Health care organizations have been faced with financial difficulties under turbulent health care environment. This situation led hospitals to concentrate their efforts to improve their managerial efficiency in various ways. This study aims to evaluate technical efficiency of 31 tertiary hospitals in Korea and find determinants which are closely related with hospital efficiency. Data envelopment analysis(DEA) and Tobit Model were adopted for study. For the analysis, human resource factors such as number of physicians, nurses, and administrative staffs are used as input variables and the number of inpatients and outpatients) are used as output variables. Among 31 hospitals, in CCR model, 8 hositals showed efficiency score 1 which means they have been operated in very efficient ways and BCC model showed 13 of 31 hospitals as efficient organizations. Next, we analyzed determinants which are closely related with hospital efficiency. By using Tobit model, the study showed hospital size, Quality of care, value added per capita, and revenue per patient were closely related with hospital efficiency, However, it appeared that financial status of hospitals(i.e : making profit or not) was not related with hospital efficiency.

• Korean Journal of Digital Imaging in Medicine
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• v.13 no.2
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• pp.77-81
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• 2011

Due to the increasing quantity of health services demand a wide range of growing medical markets and hospital through advanced, diversification can meet the needs of the patient. This hospital is having the introduction of expensive medical equipment. Because of this, hospitals are struggling to operate the hospital management. Therefore, when operating at the hospital before and after introduction of the most important factor in the interests of medical equipment through the analysis is directly related to hospital operations. CT study of the local clinics, or CR 40 where members of the medical equipment with 54 points against selected practitioners and hospital visits and interviews to investigate the expected benefits of each of the members raised an average of seven months to identify revenue performance caused by interests. Raised against the expected benefits resulting benefits to the overall average 87.43% did not meet the expected benefits. The hospital plans to introduce future when reviewing the medical equipment in consideration of the characteristics of the equipment requires a more solid plan, and whether the plan is properly implemented will be needed for the institutional verification capabilities.

• Health Policy and Management
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• v.9 no.4
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• pp.1-14
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• 1999

The purpose of this study was to estimate the magnitude of patient's actual cost-sharing for hospital services in the National Health Insurance which has been estimated with only a few hospitals or limited number of patients. Also we aimed at analysis of factors influencing the magnitude. Sources of analyzed data were two databases. 1997 medical benefits record of the National Federation of Medical Insurance and 1997 Statistics for Hospital Management from the Korea Institute of Health Services Management(KIHM). We merged two databases and related records for 224 hospitals. based on the identification details of each hospital. The average percent of patients' cost-sharing was 51.7% of total hospital revenues from the insurance. with 40.3% of revenue in inpatient and 67.4% in outpatient. respectively. The contributing hospital factors to the magnitude of cost-sharing were size of hospitals. teaching status. location. number of employed physicians. etc. Larger and university hospital. urban location. and with more physicians were positively correlated with higher level of cost-sharing. Additionally, the higher the expenses of inpatient's treatment was, the higher the size of patient's cost-sharing was. These findings suggest that present level of patients' cost-sharing is quitely high and it is urgent to reduce the patient's cost-sharing to the reasonable level. It would be necessary to extend the coverage of insurance benefits and to develop policies focusing on larger hospitals and inpatient services.