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Health Care Finance, the Performance of Public Hospitals and Financial Statement Analysis


  • Panayiotis Curtis
  • Theodore A. Roupas


Regional form of Organization of the health care that are called today DyPE, have as a main goal to promote more rational resource allocation through decentralization in the decision making process. The concern for more effective and efficient use of resources devoted into the health care sector renders hospitals a critical vehicle of the quest for superior economic performance, especially if we take into our consideration their mounting over time deficits. Economic performance is primarily traced through a set of specific financial ratios, which embrace important elements that constitute the substance of the financial well-being of hospitals as economic units. An array of financial ratios is critically reviewed and a combination of them is proposed as a means of effective financial management. The later is necessary to ameliorate the funding strain imposed on the health care system and especially on hospitals. The financial performance is determined by the return on capital (profitability) in connection with the risk involved. Both factors determine the value created, which in turn affects the amount of financing attracted in the sector. The financial information available to the supervising regional bodies (DyPE), don’t considered sufficient for their management to assess financial management of hospitals effectively. The lack of the appropriate economic data is due to the fact that double entry accounting has not yet fully adopted by the economic units that report to the corresponding DyPE. So, double entry accounting is prerequisite for reporting and monitoring acceptable financial performance. The later is vital in securing that the financial needs of the health sector that are growing at an ever accelerating pace, are met.

Suggested Citation

  • Panayiotis Curtis & Theodore A. Roupas, 2009. "Health Care Finance, the Performance of Public Hospitals and Financial Statement Analysis," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 199-212.
  • Handle: RePEc:ers:journl:v:xii:y:2009:i:4:p:199-212

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    References listed on IDEAS

    1. Bhat Ramesh & Jain Nishant, 2006. "Financial Performance of Private Sector Hospitals in India:Some Further Evidence," IIMA Working Papers WP2006-04-08, Indian Institute of Management Ahmedabad, Research and Publication Department.
    2. Flamholtz, Eric G. & Aksehirli, Zeynep, 2000. "Organizational success and failure:: an empirical test of a holistic model," European Management Journal, Elsevier, vol. 18(5), pages 488-498, October.
    3. Watkins, Ann L., 2000. "Hospital financial ratio classification patterns revisited: Upon considering nonfinancial information," Journal of Accounting and Public Policy, Elsevier, vol. 19(1), pages 73-95.
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    Cited by:

    1. George Loukopoulos & Theodoros Roupas, 2014. "Financial Analysis of the Greek Private Health Sector over the Last Decade (2002-2012)," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 3-19.


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