Evaluation Research On Profitability And Solvency Of The Comprehensive Public Hospitals At The County Level In Anhui Province

Objective: The research aims to provide the basic data and decision-making basis for the reform of public hospitals by analyzing the profitability and solvency of comprehensive public hospitals at the county level in Anhui province, and factors influencing the profitability and solvency.Methods: Relevant financial data(2007-2013) of 59 comprehensive public hospitals at the county level in Anhui province were collected with the annual national health financial report software system of Anhui provincial health and family planning committee of planning and information.Since the number of Anhui provincial hospitals may change from year to year, we chose 59 comprehensive public hospitals with relatively complete financial data at the county level as the research sample, of which 16 from north Anhui, 22 from middle Anhui, and 21 from south Anhui. Based on the hospital financial data, four indicators including return on net assets, capital cash flows, asset-liability ratio and liquidity ratio were employed to indicate the hospital overall earnings and total assets return, the proportion of debt funds to total assets, the repay ability of current assets. The method of statistical description was adopted to analyze the financial data.Results:(1)From 2008 to 2013, return on equity volatility of the comprehensive public hospitals at the county level in Anhui province assumed a declining trend, which indicated that the overall profitability declined as a whole. The profitability of hospitals in North Anhui province is much higher than that of the hospitals in Middle and South Anhui province. The overall return on equity of hospitals in South Anhui province wasnegative, which indicated that the public hospitals at the county level in the south of Anhui were less profitable.(2) From 2012 to 2013, assets cash flow of per unit of increased from 8.7 to 15.2, which indicated an improved capability of cash collection of the hospitals, with a decline found in the hospitals of north and middle Anhui province, and a rise the hospitals of south Anhui Province.(3) 3. From 2007 to 2013, asset-liability ratio rose from 29.6% to 52.3%, which had reached the cordon of 35%. The assetliability ratio was too high, which was harmful to the development of the hospitals. The overall rise trend was found in the hospitals of south, middle and south Anhui, and no regional differences were found between the hospitals of south, middle and south Anhui Province.(4)4. From 2007 to 2013, liquidity ratio increased from 1.45 to 1.49, which showed a trend of fluctuations. There was a rise from 2007 to 2010 and a decline from 2010 to-2013. With reference to the standard of international liquidity ratio, the ideal liquidity ratio is 2, which shows that the short-term debt paying ability gradually strengthened from 2007 to 2010,and weakened from 2010 to 2013.Conclusions: The profitability of the comprehensive public hospitals at the county level in Anhui province is relatively low and on the decline. With increasing debt, the longterm debt paying ability is weak. Though the short-term debt paying ability develops well, it is on the decline. And there are significant differences between different regions. Special attention should be paid to the influence of policy on the development of hospitals.