Effective Financial Management of Vachira Phuket Hospital Fiscal Year 2560-2564 B.E.

Abstract

Background: Financial management in hospitals is an important factor affecting the quality of services and the stability of the public health system. Vachira Phuket Hospital, a regional hospital in Phuket Province, must manage its budget effectively to meet patient needs and manage costs appropriately. However, during the fiscal years 2017-2021, the hospital faced several financial problems, such as lack of liquidity, delayed collection of medical expenses, and high medical costs. Therefore, it is necessary to study and analyze the hospital's financial performance in order to use the results as guidelines for improving financial management efficiency. Research objectives: (1) To study the financial management efficiency of Vachira Phuket Hospital during the fiscal years 2017-2021. (2) To compare the cost of outpatient and inpatient treatment of Vachira Phuket Hospital with the standards of the Ministry of Public Health. (3) To find ways to improve and develop the hospital's financial management for maximum efficiency. Research methodology: This study was descriptive research using a retrospective data review. (Retrospective Review) In the financial report of Vachira Phuket Hospital for a period of 5 years (from fiscal year 2017-2021), the data used for analysis include the financial statement, profit and loss statement, medical cost data, and financial ratios. The data was analyzed using Microsoft Excel, SSB, Hosxp, and Express computer programs, considering 7 indicators: Current Ratio, Quick Ratio, Cash Ratio, Average Collection Period, Average Payment Period, Net Profit Margin, and Unit Cost of Outpatients and Inpatients. Results: The results of the study found that (1) Vachira Phuket Hospital has a problem with financial liquidity. The Current Ratio throughout 2017-2021 is lower than the standard criteria. And it tends to decrease during 2017-2020 before improving in 2021. However, the quick ratio tends to decrease and is lower than the standard in 2019-2020, reflecting the problem of the hospital's current liabilities payment. In addition, the cash to current liabilities ratio tends to decrease during 2017-2019 and increases in 2020-2021, but remains lower than the standard of the Ministry of Public Health. (2) In terms of revenue collection, it was found that the average period for collecting medical treatment receivables was higher than the standard, indicating that collecting money from patients and related agencies is still inefficient. Resulting in a large amount of accumulated outstanding debt. While the average period for paying trade creditors (Average Payment Period) tends to increase and is higher than the standard, reflecting the problem of delays in the hospital's debt management. (3) For the net profit margin, it tends to decrease between 2017-2020 and improves in 2021, the main reason being increasing expenses every year. In particular, personnel expenses, drug and medical supply expenses. However, in 2021, the hospital's income increased from government support during the COVID-19 pandemic, resulting in an improved net profit margin. (4) In terms of treatment costs, the average outpatient (OPD) cost over the past 5 years was 1,009.97 baht per visit, which is still within the standard range. However, in 2020-2021, OPD costs were higher than the standard due to the COVID-19 pandemic, leading to advance drug distribution to reduce the number of hospital visits. Meanwhile, inpatient (IPD) costs ranged from 20,554.20 to 25,753.46 baht per patient, which is higher than the Ministry of Public Health's standard of 14,409.07 baht. Conclusion: The study results indicate that Vachira Phuket Hospital still lacks efficiency in financial management in many areas, especially problems with financial liquidity, debt management, and inpatient treatment costs that are higher than the standard. Although revenue and cost management have improved in 2021, a systematic financial management approach is still needed. Recommendations from the research include (1) developing a more efficient system for tracking and managing medical debtors; (2) controlling medical supply costs and making efficient use of resources; and (3) establishing a clear policy for income and expenditure management to reduce hospital liquidity problems.