Health Policy Manag.  2023 Sep;33(3):355-362. 10.4332/KJHPA.2023.33.3.355.

An Analysis of Factors Affecting Financial and Operating Efficiency at Regional Public Hospital

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

• KMID: 2549119
• DOI: http://doi.org/10.4332/KJHPA.2023.33.3.355

Abstract

Background
Financial efficiency in monetary units and operational efficiency in non-monetary units are separately classified and evaluated. This is done to prevent the duplication of monetary units and non-monetary units in inputs and outputs. In addition, analyses are conducted to determine the factors that affect each aspect of efficiency. To prevent duplication of monetary and non-monetary units in inputs and outputs, financial efficiency, consisting of monetary units, and operational efficiency, comprising non-monetary units, are separately classified and evaluated. Furthermore, an analysis is conducted to identify the factors that affect each aspect of efficiency.
Methods
This study conducted a panel analysis of 34 regional public hospitals and influencing factors on efficiency for 5 years from 2015 to 2019. Financial efficiency and operational efficiency were calculated through data envelopment analysis. Moreover, multiple regression analysis was conducted to identify the factors that influence both financial efficiency and operational efficiency.
Results
The factors that affect financial efficiency include the number of medical institutions within the treatment area and the ratio of patients receiving medical care. Additionally, operational efficiency is influenced by the type of medical institution, the number of medical institutions within the treatment area, and the number of nursing positions per 100 beds.
Conclusion
In order for regional public hospitals to faithfully fulfill their functions and roles as regional base public hospitals, several measures are necessary. Firstly, continuous monitoring and reasonable support are required to ensure efficient operation and performance. Secondly, a financial support plan tailored to the characteristics of local medical centers is needed. Additionally, local medical centers should strive to enhance their own efficiency.

Keyword

Regional Medical; Public Health Service; Efficiency; Data Envelopment Analysis