HMO market penetration does not account for poorer financial performance of public compared with private hospitals

2002 ◽  
2021 ◽  
Vol 6 (1) ◽  
pp. 24-34
Author(s):  
Cranimar Muhindo ◽  
John Rwakihembo

Purpose: This study set out to empirically examine the relationship between inventory management and private hospitals' financial performance in Western Uganda. Methodology: The study adopted a positivist approach and a cross-sectional research design to collect data from 32 Private hospitals in Western Uganda. The study used a closed-ended questionnaire to collect data and simple linear regression for data analysis. Findings: Results revealed inventory management as a significant predictor of private hospitals' financial performance in Western Uganda. The study recommended that private hospitals adopt robust and scientific inventory management systems and models that aim to optimise stock levels and minimise costs if they are to achieve substantial financial performance. Contribution to Practice and Policy: The study has deep-rooted the urgent need for private hospitals to adopt more stringent inventory management systems that will ensure adequate stock levels, minimise costs and enhance superior financial performance. However, the study was positivistic, thus subject to methods bias that could have affected the results' validity.


2021 ◽  
Vol 11 (1) ◽  
Author(s):  
María Victoria Ruiz-Mallorquí ◽  
Inmaculada Aguiar-Díaz ◽  
Beatriz González- López Valcárcel

Abstract Background In developed countries around the world there is a trend to enhance the public-private collaboration in healthcare. In Spain, a decentralized country with a NHS funded with taxes and universal coverage, commissioning to for-profit private hospitals the production of healthcare services to specific patients that are publicly insured is a traditional practice. Around 43% of the for-profit private hospitals in Spain have a commissioning agreement with the NHS to diagnose or treat patients on public tariffs. These revenues represent 26% of the total revenues of private for-profit hospitals. The research question of this study is if commissioning with the NHS improves the financial performance of private-for-profit hospitals in Spain. Methods With a long panel (2000–2017) of for-profit hospitals we estimate a model for the financial performance (return on assets) using commissioning as main explanatory variable and other variables as control (variables financial indicators and structural information). Specific models are estimated for subgroups of hospitals according to size and specialization. The models are estimated by panel regression with fixed effects and GMM as robustness. Results Private for-profit hospitals that have commissioning with NHS obtain higher financial performance than no-commissioning hospitals. This effect varies depending on hospital size and type (hospital specialization), the advantage being more relevant for general hospitals and particularly for hospital with at least 50 beds. Conclusions Commissioning with the NHS is a promising source of financial profitability for general acute private for-profit hospitals. The evidence provided by this study may orientate the NHS in the regulation and negotiation of commissioning contracts in healthcare.


2021 ◽  
Vol 6 (1) ◽  
pp. 12-23
Author(s):  
Muhindo Cranimar ◽  
Rwakihembo John

Purpose: This study aimed at examining the mediating effect of competitive advantage in the relationship between working capital management (WCM) and the financial performance of private hospitals in Western Uganda. Methodology: The study adopted a positivist approach and a cross-sectional research design to collect data from 32 Private hospitals in Western Uganda. A closed-ended questionnaire was used to collect data from hospital administrators, accountants, storekeepers and pharmacists in private hospitals who were purposively selected. Hierarchical multiple regression was used for data analysis. Findings: Results indicate that competitive advantage is a significant mediator in the relationship between working capital management and private hospitals' financial performance in Western Uganda. Unique Contribution to practice and policy: The study has deep-rooted the urgent need for private hospitals to adopt more innovative strategies to attain a competitive edge and hence superior financial performance. However, the study was positivistic, thus subject to methods bias that could have affected the results' validity. Keywords: Working Capital Management, Competitive advantage, financial performance


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