3. Background
-Financial statement has been reported to Health
Insurance Group, Ministry of Public health
-Lack off benchmarking
-Continuous monitoring and evaluation of hospital
financing performance is necessary for hospital
managers and System governance agency, Ministry
of Public Health
HealthInsuranceSystemResearchOffice
4. Objective
To establish a set of financial benchmark for
stakeholders (government agencies, providers and
purchasers) to using for hospital financial
management
HealthInsuranceSystemResearchOffice
5. Methodology
HealthInsuranceSystemResearchOffice
-Secondary data : Hospital’s financial
Statements
-Hospital expenditures (input mixed), which
includes salary, compensation, drug, material
supply and other expenses.
-Financial ratio analysis (performance) EBITDA,
cash ratio, average collection period, payment
period and service cost
6. Financial ratio (performance)
HealthInsuranceSystemResearchOffice
Ratio Equation
1. EBITDA Earnings before Interest ,TAX, Depreciation And
Amortization
2. Cash Ratio Cash and Cash Equivalents / Current Liabilities
3. Average collection period 365 /Account Receivable Turnover
4. Average payment Period (Average accounts payable / Purchases) x 365
5. Service Cost Service cost/Total expenses
7. ResultHealthInsuranceSystemResearchOffice
Source : Health Insurance Group, MOPH
MOPH’s hospital type
#
District Hospital (DH) 10 - 90+ 727
General Hospital (GH) >300 - 400+ 69
Region Hospital (RH) >600 - 800+ 25
Total 821
Type HospitalBed Size
9. Financial ratio (performance) by hospital type0
1,0002,0003,0004,0005,000
DH GH RH
excludes outside values
-2
0246
value
DH GH RH
excludes outside values
05
1015
averagecollectionperiod
DH GH RH
excludes outside values
0
200400600800
value
1 2 3
excludes outside values
.75
.8
.85
.9
.95
value
1 2 3
excludes outside values
EBITDA CASH RATIO
Avg. collection
period
Avg. payment
period Service Cost
10. ConclusionHealthInsuranceSystemResearchOffice
Financial performance benchmarking can give
stakeholder a better sense of the components of financial
system and this can help hospital managers to identify
problems on time and manage them accordingly.
The system will enable the managers to compare their
performance with other hospitals of the same level.
However, benchmarking financial development needs
more reliable information to support and effectively plan
for financial management.
11. Limitations
HealthInsuranceSystemResearchOffice
- The model is not completely developed, and
the continuity of its development is actually
ongoing.
Recommendation
- additional study on suitable methodology
in order to solve variation with in group is
required.