Efficiency Analysis of Financial Management Administration of ABC Hospital using Financial Ratio Analysis Method
DOI:
https://doi.org/10.21512/bbr.v7i1.1456Keywords:
financial ratio, liquidity ratio, assets utilization ratio, long-term solvency ratio, profitability ratioAbstract
This paper evaluated the financial performance of ABC hospital within the period of 2012 to 2013. To overcome the problems faced by the hospital related to how to measure and presented its financial performance in which financial ratio analysis was undertaken. These financial ratios were employed to measure the liquidity, assets utilization, long-term solvency and profitability of the hospital. This analysis was conducted in order to prove whether the hospital has been managed efficiently or not in accordance to Indonesian Hospital Quality Accreditation as stated in its clause on Administration Standard No. 5 Parameter No. 3 that the hospital financial management shall be conducted in appropriate way in order to guarantee its operation efficiently. The result showed that overall financial performance of ABC hospital increased considerably in those two years of the analysis. A significant change was occurred on its solvency ratio which was decreased from -2% to -8%, indicating its loose dependency due to its founder’s strong financial support. Therefore, based on this favorable result, the hospital was regarded to have efficient hospital management and thus, together with other standard fulfillment, it was accredited by Indonesian Health Ministry.Plum Analytics
References
Florenz, C. T. (2012). A Comparative Analysis of the
Financial Ratios of the Financial Ratios of Listed Firms Belonging to the Education Subsector in the Philippines of the Years 2009-2011. International Journal of Business and Social Science, 3(21), 173-190.
Garrison, R. H. (2012). Managerial Accounting an Asian
Perspective. 1st Edition. Singapore: McGraw-Hill.
Haka, W. (2010). Financial and Managerial Accounting:
The Basis for Business Decision (15th ed.). New York: McGraw-Hill.
Komite Akreditasi Rumah Sakit (KARS). (2011). Standar
Akreditasi Rumah Sakit. Jakarta: KARS.
Komite Akreditasi Rumah Sakit (KARS). (2011). Pedoman
Proses Survei Akreditasi Rumah Sakit. Jakarta: KARS.
Downloads
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:
a. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License - Share Alike that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
b. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
c. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
USER RIGHTS
All articles published Open Access will be immediately and permanently free for everyone to read and download. We are continuously working with our author communities to select the best choice of license options, currently being defined for this journal as follows: Creative Commons Attribution-Share Alike (CC BY-SA)