Analysis on the financial Performance of Korean Regional Public Medical Centers
Authors:   Asia-Europe Perspective Association, Jang Seung-Wook 
Published: June 2018

The purpose of this study is to find the determinant variables to make financial performance in Korean regional public medical centers. Through needed that the maximization of the profit for the financial independence and increase efficiency to regional public medical centers, the proformance of Korean regional public medical centers has shown a deficit because public medical centers expectation that the role of public hospitals. Achieve the net income of the local medical Medical Center is 6 and the remaining 28 net loss occurred in the Medical Center. Increase the scale of the loss and debt and are experiencing difficulties in the management of the local medical.
According to previous studies, the cause of the deficit of the local medical are the publicity of work, the labor costs, the location of the medical center, the presence of competing hospitals, transportation, facilities and medical personnel, executives, management skills, adaptability of the health care environment changes, facilities, and management of the system. So, to set of long-term strategy for improve the profitability of the room Medical Center needed that identify and review about factors in profitability.
For this study obtained the fianacial statements of the 34 local medical centers form 2008 to 2010. The methodology of the study are as follows. First, take a look at the basic statistics and then correlation analysis is carried out. Next, multivariate panel regression analysis is conducted for verification determinants of financial performance of the local medical.
The results of the analysis are as follows. First, we were to look at basic statistics, with average and median total assets ratio of ordinary income to local medical and healthcare revenue ratio of ordinary income to the negative (-) value. Analysis of the correlation between variables (amount) of the correlation, while the total assets ratio of ordinary income to medical Revenue Recurring profit margin, current ratio, total assets turnover, material costs ratio and the proportion of foreign revenue and scale, fixed-asset ratios, labor variable ratio, management fee ratio and the negative (-) correlation was found. The value of the correlation coefficient of the independent variable and multi-collinearity problem does not concern the verification results of the dispersion coefficient of expansion was found.
Looking at the results of the multivariate regression analysis by the least squares method (OLS), size (SIZE), current ratio (CUR), Asset Turnover (TAT), labor ratio (LAC), material ratio (MAT) and the ratio of outpatient revenue (OUT) to total capital ratio of ordinary income to the variables affecting it can be seen that And the results of analysis on the determinants of healthcare revenue ratio of ordinary income to labor ratio (LAC) and the ratio of administrative expenses (MAI) medical-earnings ratio of ordinary income to determine the factors that were found.
Total capital Ordinary variables such as the ratio of ordinary income to total assets through the panel regression analysis of the determinants, the result of verification, the scale (SIZE), liquidity (CUR), Asset Turnover (TAT) and labor ratio (LAC) of the local medical appeared to affect the margin was found that, if foreign earnings ratio (OUT) of the total capital ratio of ordinary income to partially influence. Revenue Recurring local medical health care labor ratio (LAC) variables affecting the margin of medical-earnings ratio of ordinary income to determine the factors for analysis were found.
Showed more analysis results, the size of the local medical centers in Korea, the current ratio, total assets turnover, percentage of labor, materials, proportions and ratio of outpatient revenue to the variables that affect the financial performance, particularly an increase in the total assets turnover, labor reduction and outpatient revenue management policy is necessary for the increase of the judgment.