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Importance of Financial Analysis in Hospital Economics

Importance of Financial Analysis in Hospital Economics Image

Financial Analysis in Hospital Economics – With the continuous improvement of the National economic level. The uncertainties and risks in the field of economic work are also increasing. And the development space of hospitals is also subject to various restrictions. Survival and development in such a severe situation are common problems faced by all major hospitals. The hospital’s financial department plays a leading role in the economic management of the hospital.

Here are the articles to explain, the Importance of Financial Analysis in Hospital Economics

As the main department that can control the economic management of the hospital, paying attention to and doing a good job in financial analysis is of great significance for the hospital to improve its core competitiveness and service quality. Based on this, this paper discusses the purpose, method, and content of financial analysis in hospital economics management. Analyzes the significance of hospital financial analysis, and at the same time find effective countermeasures to achieve high-quality financial analysis. To provide a reference for hospital economic management in my country.

The main purpose of hospital financial analysis

The main function of hospital financial analysis is to focus on analyzing the economic-related data generated by the recent experience of the hospital based on the financial statements. Which can scientifically evaluate the financial situation and operating results of the hospital. And at the same time reflects the adverse conditions in the hospital’s operating process.

To provide a reliable financial basis for the relevant decision-making of the hospital’s economic management. Specifically, financial analysis is mainly the basis for measuring the completed operating results of the hospital. And the financial statements mainly include business income and expenditure statements, drug income and expenditure statements, medical income and expenditure statements, and balance sheets.

By analyzing financial statements and other accounting data. We can understand the operation, development, and debt repayment of the hospital in a certain period. So that the hospital can understand its economic benefits and financial status. Financial analysis can analyze and set the financial indicators of the hospital, and find the hospital’s Unfavorable factors existing in the development process, make full use of material and human resources, optimize and adjust the asset structure so that the hospital can develop soundly.

Method and content of hospital financial analysis

Hospital financial analysis methods

Hospital financial analysis methods include ratio analysis, trend analysis, factor analysis, and so on. The ratio analysis method is mainly to calculate the structure of financial expenditure, investment, and related ratios. Analyze the operation of the hospital from various aspects. However, this method has no uniform industry norms and standards. It is impossible to judge whether the ratio is high or low.

However, it is difficult to find a standard for comparison. The trend analysis method can compare the longitudinal financial indicators of hospitals in different periods. And the horizontal comparison between different hospitals can analyze the reasons for the changes in the indicators. Which is helpful for the later development of hospitals.

However, when applying it, it should be noted that the data in each period is different. So when calculating, it is necessary to unify the caliber and subtract the existing contingency factors. The factor analysis method mainly focuses on the impact of different factors on the indicators. When other When the factors appear to be stable, the order determines the impact of individual changes in different factors. But since the calculation order of the fluctuation values ​​of different factors will also be different. It is difficult to define the impact indicators between different factors.

Contents of hospital financial analysis

The main content of financial analysis of hospital economic management is divided into internal and external analysis content according to different information users, but there is also special analysis content.

The internal analysis content is made by the hospital’s internal managers based on financial analysis to make corresponding decisions, mainly including budget analysis, investment analysis, financing analysis, financial situation analysis and results in analysis, etc. External analysis content includes the external application of the hospital, that is, the superior financial, the competent department, and the bank that opened the account, etc., need to analyze the financial information of the hospital according to their own needs, mainly analyzing the hospital’s asset utilization ability, profitability, debt repayment ability, and comprehensive ability, etc.;

The content of thematic analysis is provided by the hospital management Carry out corresponding special financial analysis according to the actual situation, mainly to broaden the scope of hospital financial analysis and seek a better market space for the development of the hospital.

Significance of financial analysis in hospital economics management

Effectively evaluate the operation of the hospital

The financial statement in the financial analysis is an important basis for evaluating the operation of the hospital. Based on the financial statement, the financial management personnel can fully understand the specific conditions of the hospital’s profit, operation, and debt repayment, and then scientifically evaluate and analyze the overall operating performance of the hospital.

Directly discover problems and formulate corresponding measures, and solve problems in time according to the measures. To speed up the improvement of the hospital’s economic management level and ability. And further, enable the hospital to achieve better economic benefits. Financial analysis can clarify the assets of the hospital in each period. The hospital provides an innovative basis for economic management. And provides a basis for economic managers to make scientific decisions, thereby improving the hospital’s economic management system.

Effective means for hospitals to achieve financial goals

As medical advancements in recent years have broadened the competitive landscape, financial analysis plays an important role in rationalizing a hospital’s existing assets. Based on various methods of financial analysis, financial analysts discover the potential capabilities of the hospital from multiple negative aspects, make breakthroughs in relatively weak links, improve the utilization rate of the hospital’s material and human resources, and discover the reasons for the low utilization rate, prompting the hospital to Efficient operation of experience activities maximizes the accumulation of economic development, and at the same time accelerates the hospital’s transition from the traditional extensive management model to the refined management model.

An important basis for economic management decision-making

Various complicated factors intertwined in the process of hospital economic management, and systematic, scientific, and effective measures can analyze the specific situation in hospital economic management, control the objective laws in economic management decision-making and business operations, and use large amounts of data in financial statements Transform it into useful decision-making information to ensure the normal operation of hospital economic management.

Financial analysis can provide a macroscopic understanding of the hospital’s current operating capabilities and can provide a basis for investment decisions and risk assessments, making it easier for hospital economic managers to make more scientific and effective operating decisions.

Effective countermeasures to achieve high-quality financial analysis in hospital economics management

Emphasis on prior financial analysis

Financial analysis work requires forward-looking thinking to judge problems, analyze problems, and predict problems. Therefore, it is necessary to combine the hospital’s operating conditions in recent years, understand the market environment and medical development, understand the current operating income and risks, provide a reliable basis for the sustainable and healthy development of the hospital, and enhance the core competitiveness of the hospital.

Hospitals need to focus on pre-event financial analysis, do a good job in pre-forecast work, judge and collect financial information promptly, make decisions based on scientific and effective financial information, and improve financial management capabilities and quality at the same time to prevent blindness in financial analysis. To ensure the healthy survival and development of the hospital.

Improving financial analysis methods

Financial personnel needs to apply different analysis methods to every aspect of economic management. Discover the existing connections, and find effective breakthrough points for the hospital’s economic growth in time. At the same time, they need to judge and research whether it is scientific and reasonable before applying financial data. Don’t ignore the innovative indicators of financial analysis when making profits, and pay attention to the mastery of financial analysis methods to continuously ensure the effectiveness and rationality of financial indicators and data.

Improve the comprehensive quality of financial personnel

As the main body of financial management, financial personnel needs to continuously improve the comprehensive quality of financial personnel if they want to obtain ideal financial analysis results. Financial personnel should take the initiative to learn relevant knowledge. They need to understand finance, finance, law, management, and other subject knowledge, constantly broaden their knowledge structure, master the skills and methods of financial analysis, maintain rigor in daily work, take financial analysis seriously Work, continuously improve work quality and efficiency, make financial analysis reports more accurate and reliable, and ensure the scientific implementation of subsequent economic management decisions.

Conclusion

To sum up, in the current highly competitive market, hospitals need to start from multiple aspects for financial analysis in economics management and clarify their financial analysis. And strengthen implementation after formulating corresponding systems to ensure that each job implement. At the same time, according to its situation and social background. It should properly adjust and improve the details of financial management. To ensure that the hospital can achieve the goal of sustainable and healthy development.

Importance of Financial Analysis in Hospital Economics Image
Importance of Financial Analysis in Hospital Economics; Photo by Markus Spiske on Unsplash.
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