Analysis of Interrelation between Operating Expenses to Patient Revenues and Profitability of Regional Public Hospitals

The purpose of this study is to provide basic data required to work out measures to improve profitability of regional public hospitals in future by analyzing of Interrelation between Operating Expenses to Patient Revenues and Profitability of Regional Public Hospitals. For reference of this analysis, the data compiled in 2008 by 34 regional public hospitals in Korea were utilized. This study focused on operating margin and net profit to gross revenues as a measurement index of profitability. As a result, it was found that there were significant differences in hospital profitability between a higher and lower groups depending upon relevant indices such a Salaries to Patient Revenues and Administrative Expenses to Patient Revenues. In conclusion, to improve the profitability of regional public hospitals, the efforts to reduce Salaries to Patient Revenues and Administrative Expenses to Patient Revenues might be needed.