Using ratios to measure hospital financial performance: can the process be simplified?
Evaluation of a hospital's financial condition is often contingent upon the analysis of financial ratios. This study of 114 Illinois hospitals sought to simplify the financial assessment process by exploring the empirical dimensions that underlie 25 financial ratios. Results of a factor analytic solution suggest that there are five underlying factors which account for approximately 77% of the total variance. Uses of summative scaled measures in health services financial management and research are discussed.
D000066:Accounting / Q000706:statistics & numerical data*; D000067:Accounts Payable and Receivable; D003625:Data Collection; D005163:Factor Analysis, Statistical; D005375:Financial Audit / Q000706:statistics & numerical data*; D006764:Hospitals, Community / Q000191:economics*; D007087:Illinois; D007182:Income / Q000706:statistics & numerical data