development of financial performance benchmark of moph’s hospitals in thailand

Utoomporn Wongsin

Thaworn Sakunphanit

Dichapong Pongprattrachai

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Development of Financial Performance Benchmark Of MOPH’s hospitals in Thailand

Outline

1. Background

2. Objective

3. Methodology

4. Result

5. Conclusion

6. Limitation & Recommendation

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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

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สำ��นั�กง�นัวิจั�ยเพื่��อก�รพื่�ฒนั�หลั�กประก�นัสำ�ขภ�พื่ไทย เคร�อสำถ�บั�นัวิจั�ย ระบับัสำ�ธ�รณสำ�ข

Objective

To establish a set of financial benchmark for stakeholders (government agencies, providers and purchasers) to using for hospital financial management

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MethodologyH

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-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

Financial ratio (performance) H

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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

Result H

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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

Source : Financial report 2011,Health Insurance Group, MOPH

0

500

1,000

1,500

2,000

2,500

0

500

1,000

1,500

2,000

2,500

DH GH RH DH GH RH DH GH RH

DH GH RH DH GH RH DH GH RH

excludes outside values excludes outside values excludes outside values

excludes outside values excludes outside values excludes outside values

compensation drug material supply

others salary total expense

Mill

ions

Th

ai B

aht

Graphs by typename

Financial ratio (performance) by hospital type0

1,00

02,

000

3,00

04,

000

5,00

0m

illio

ns o

f bah

t

DH GH RHexcludes outside values

-20

24

6va

lue


05

1015

aver

age

colle

ctio

n pe

riod


0

200

400

600

800

valu

e

1 2 3excludes outside values

.75

.8.8

5.9

.95

valu

e

1 2 3excludes outside values

EBITDA CASH RATIO Avg. collection period

Avg. paymentperiod Service Cost

ConclusionH

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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.

Limitations

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- 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.

Questions & Comments

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Thank you.

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www.hisro.or.th

Example: H

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development of financial performance benchmark of moph’s hospitals in thailand

Economy & Finance