Health Policy Manag.  2019 Mar;29(1):27-39. 10.4332/KJHPA.2019.29.1.27.

The Influence Factors on the Performance of Regional Public Hospitals

  • 1Department of Health Administration, Yonsei University College of Health Sciences, Wonju, Korea.
  • 2National Medical Center, Seoul, Korea.
  • 3Department of Health Administration, Yonsei University Graduate School, Wonju, Korea.


This study is designed to estimate the factors that affect the level of three different performance (publicity, efficiency, profitability) among regional public hospitals.
The units of analysis are the regional 30 hospitals, which have the operating data during 22 years (from 1933 to 2014). The research method is used by fixed panel analysis. The publicity is measured by medicaid outpatient proportion and medicaid inpatient proportion. The efficiency is measured by two types of efficient score by DEA (data envelopment analysis). The profitability is measured by medical income to medical revenue and ROA (return on total asset).
At first, the increase of bed gives negative affect to the publicity but give positive effect to the efficiency and profitability. Because it means the increase of the region population, it gives more profitability compare to hospital with small number of beds. The more the operating period is the higher effect to the publicity and efficiency because of it's refutation. The debt ratio gives negative effect to publicity, but positive effect to profitability. It is the normal belief that there is inverse relationship between publicity and profitability. The turnover rate of bed gives the negative affect to the publicity, but positive affect to the efficiency and profitability. That give us the implication that type of the inpatient make different effect the hospital performance. The ratio of labor cost give negative effect to all kind of performance. That means that the higher labor cost don't mean the higher publicity and labor cost control is very important factors to hospital performance. So the region hospital have to focus the labor factors more to make higher performance.
As the conclusion, the independent variables give similar effect to the efficiency and the profitability, but give inverse effect to the publicity. That means that if an region hospital want to make the more publicity, it loss the higher efficiency and profitability. Specially publicity is higher negative relation with the profitability.


Regional public hospital; Panel data analysis; Performance; Publicness; Efficiency; Profitability

MeSH Terms

Cost Control
Hospitals, Public*
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