Health Policy Manag.  2023 Mar;33(1):55-64. 10.4332/KJHPA.2023.33.1.55.

An Analysis of Factors Affecting Medical Operating Income at Regional Public Hospital

• Noh JW
• Kim JH
• Jeon HW
• Kim JH
• Bang HJ
• Lee HJ

• KMID: 2549086
• DOI: http://doi.org/10.4332/KJHPA.2023.33.1.55

Abstract

Background
Despite the various activities of the regional public hospitals, discussions are being made as to whether or not to continue due to the issue of financial deficit. Therefore, the main factors affecting the fiscal deficit were analyzed with 10-year data.
Methods
This study is a panel analysis that analyzed the characteristics of 34 regional public hospitals and influencing factors on medical benefits for 10 years from 2010 to 2019. First, we analyze the determinants of medically vulnerable areas set by the government, analyze the trend of medical profit per 100 beds and medical profit rate from 2010 to 2019, and identify the factors that affect them.
Results
Differences in medical profit per 100 beds and medical profit-to-medical profit rate were caused by market share representing regional characteristics, and both indicators improved as the number of outpatients increased. The important influencing variables are the number of doctors and nurses, and both indicators improve when there are specialists, but medical benefits decrease as the number of doctors increases when judged by the number of people per 100 beds. In addition, the number of nurses per 100 beds does not contribute to medical profit and has a negative effect on the medical profit ratio.
Conclusion
As only regional characteristics were taken into account for medically vulnerable areas, operational characteristics need to be considered. The greatest impact on the finances of local medical centers is the proper staffing of doctors and nurses, and their efficient arrangement is the most important factor in financial stability.

Keyword

Regional public hospital; Operating income; Operating margin; Medical vulnerability region