J Korean Acad Nurs Adm.  2019 Jan;25(1):35-41. 10.11111/jkana.2019.25.1.35.

Nursing Productivity of Tertiary General Hospitals using Financial Statements

• Noh W
• Lim JY

• KMID: 2434522
• DOI: http://doi.org/10.11111/jkana.2019.25.1.35

Abstract

PURPOSE
This study was performed to analyze financial ratios and nursing productivity and to interpret comparisons of financial standard ratios.
METHODS
The financial statements of 21 tertiary general hospitals were collected from the webpage of the National Tax Service in Korea. General characteristics of the hospitals were acquired from their webpages.
RESULTS
The results obtained were compared with the financial standard ratios of Korean hospitals. The majority of hospitals showed poor liquidity, performance, turnover, and growth. Nursing productivity was measured by calculating annual value added per nurse (￦ 39,746,938) and annual gross revenues per nurses (￦ 65,803,550).
CONCLUSION
Interestingly, although the financial ratios were generally poor, nursing productivities were very good. Nurse managers can suggest increasing nursing staff levels based on high nursing productivity despite poor financial conditions.

Keyword

Nursing productivity; Financial statements; Hospital

MeSH Terms

Efficiency*
Financial Statements*
Hospitals, General*
Humans
Korea
Nurse Administrators
Nursing Staff
Nursing*
Taxes

Reference

1. Gaynor M, Town R. The impact of hospital consolidation update. The Synthesis Project. Research Synthesis Report. 2012; 5:1–7.

2. Tsai TC, Jha AK. Hospital consolidation, competition, and quality: Is bigger necessarily better? JAMA. 2014; 312(1):29–30. DOI: 10.1001/jama.2014.4692.

3. Brown MD, Paras BA. Understand your financial statement. Medical Economics. 2011; 88(7):52–53.

4. Wagner K. 5 ways to teach physicians about financial management. Healthcare Financial Management. Journal of the Healthcare Financial Management Association. 2012; 66(9):42–43.

5. Chiang JC, Wang TY, Hsu FJ. Factors of hospital financial performance in Taiwan following implementation of national health insurance. International Business Research. 2014; 7(2):43–52. DOI: 10.5539/ibr.v7n2p43.

6. Lim JY, Noh W. Financial Management for Nurses. Seoul: HN Science;2014.

7. Holcomb BR, Hoffart N, Fox MH. Defining and measuring nursing productivity: A concept analysis and pilot study. Journal of Advanced Nursing. 2002; 38(4):378–386. DOI: 10.1046/j.1365-2648.2002.02200.x.

8. Fagerstrm L, Lønning K, Andersen MH. The RAFAELA system: A workforce planning tool for nurse staffing and human resource management. Nursing Management. 2014; 21(2):30–36. DOI: 10.7748/nm2014.04.21.2.30.e1199.

9. Hall LM. Nursing intellectual capital: A theoretical approach for analyzing nursing productivity. Nursing Economic$. 2003; 21(1):14–19.

10. Health Insurance Review & Assessment Service. Nursing grade [Internet]. 2017. cited October 12, 2018. Available from: https://www.hira.or.kr/dummy.do?pgmid=HIRAA020033000000#none.

11. Ellerbe S. What is driving the growing demand for consulting in hospital staffing, scheduling, and productivity? Nursing Economic$. 2013; 31(5):237–240.

12. Korea Society of Health Service Management. Essentials of Hospital Management. Seoul: Hyunmoonsa;2013.

13. Lim JY, Noh W, Oh SE, Kim OG. Financial ratio analysis for developing nursing management strategies in university hospitals. Journal of Korean Academy of Nursing Administration. 2013; 19(1):7–16. DOI: 10.11111/jkana.2013.19.1.7.

14. Korea Health Industry Development Institute. 2016 Statistics for Hospital Management. Cheongju: Korea Health Industry Development Institute;2017.

15. Korea Health Industry Development Institute. 2004 statistics for hospital management. Seoul: Korea Health Industry Development Institute;2005.

16. Yang DH, Kam HK. New hospital financial management. Seoul: Bomungak;2011.

17. Korean Hospital Association. Korean Institute of Hospital Management. 2012 hospital management statistics. Seoul: Korean Institute of Hospital Management;2013.

18. Lee SY, Lim JY. Evaluation of the efficiency of general nursing units using data envelopment analysis(DEA). Journal of Korean Academic Society of Home Care Nursing. 2011; 18(2):118–125.

19. Im HB, Lim JY. Evaluation of efficiency of outpatient clinic in a general hospital using data envelopment analysis (DEA). JJournal of Korean Academic Society of Home Care Nursing. 2011; 19(1):11–18.

20. Everhart D, Neff D, Al-Amin M, Nogle J, Weech-Maldonado R. The effects of nurse staffing on hospital financial performance: Competitive versus less competitive markets. Health Care Management Review. 2013; 38(2):146–155. DOI: 10.1097/HMR.0b013e318257292b.

21. O'Brien-Pallas L. Evidence-based standards for measuring nurse staffing and performance. Otawa, Ontario: Canadian Health Services Research Foundation;2004.

22. Unruh L. Nurse staffing and patient, nurse, and financial outcomes. The American Journal of Nursing. 2008; 108(1):62–71.

23. Wieck KL, Dols J, Northam S. What nurses want: The nurse incentives project. Nursing Economic$. 2009; 27(3):169–177. 201