A new perspective on hospital financial ratio analysis.
Using audit financial data in a study of 2,189 not-for-profit hospitals for the period 1989-1992, six financial characteristics of performance were defined. These characteristics are profitability factor, fixed-asset efficiency, capital structure, fixed-asset age, working capital efficiency, and liquidity. The statistical output also shows the specific sets of financial ratios that can be used to measure the six characteristics of hospital performance. The results of this study can be beneficial to healthcare financial managers, hospital boards, policy groups, and other relevant entities because it affords them a clear understanding of an institution's financial performance.
Zeller
T L
TL
School of Business Administration, Department of Accounting, Loyola University, Chicago, IL, USA.
Stanko
B B
BB
Cleverley
W O
WO
D002202:Capital Financing; D003625:Data Collection; D005163:Factor Analysis, Statistical; D005377:Financial Management, Hospital / Q000145:classification*; D006788:Hospitals, Voluntary / Q000191:economics*; D007182:Income; D007449:Investments / Q000191:economics; D009626:Terminology as Topic; D014481:United States