The Financial Situation of the Hospital After the Introduction of the Law on the Hospital (Sytuacja finansowa szpitala po wejœciu w ¿ycie sieci szpitali)

Purpose: Changes in the health care system introduced in the fourth quarter of 2017 with the entry into force of the so-called “Hospital networks” constituted a huge challenge for managers of medical entities. The assumption of this work is to present, based on the example of the provincial hospital in £ódŸ, how the changes in legal regulations introduced over the last few years have influenced the financial condition of the institution and its organization. Design/methodology/approach: The financial results of the audited entity were analysed from 2014 to 2019. The most important legal changes (mainly the implementation of the hospital network) as well as their impact on the income from the National Health Fund (NFZ) are presented. The probable (expected) financial result for 2019 is estimated. Findings: From 2014 to 2016, there was a systematic increase in revenues from the NFZ and a positive financial result (about 10 million a year). From 2017, along with the Act on basic hospital security, there was a reduction in profits. Medical staff strikes (payroll claims) in the second half of 2018 additionally contributed to the reduction of revenues from the NFZ. As a consequence, it was necessary to implement,from 2019, a series of corrective actions aimed at reducing costs and increasing savings (employment reduction, organizational changes). Research limitations/implications: Implementation of cost-reducing measures. Originality/value: Original work.