Financial analysis of long-term care facility：a case of nursing home attached to medical legal-foundation in Kaohsiung City

• Main Authors: Chi-Ting Liang, 梁期婷
• Other Authors: Ya-Ai Cheng
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/aq3wq3

碩士 === 義守大學 === 醫務管理學系 === 106 === Plummeting of marriage rate and birth rate has contributed to aging of the population which has created an enormous demand for chronic care. The present study aimed at investigating the correlation between bed occupancy rate and (1) net profit as well as (2) manpower cost through analyzing the status of financial operation of a 110-bed chronic care institute in Kaohsiung, Taiwan. Between December 2016 and December 2017, financial reports, client flow, manpower cost as well as profits and expenses of a chronic care institute were analyzed. Charges and financial reports from five Taiwanese chronic care institutes with 73, 96, 110, 111, and 200 beds were used for comparison. Analysis of client flow demonstrated an average of 37.5% monthly increase in bed occupancy rate from January to July 2017. After the expansion of bed number from 55 to 110 in August 2017, the bed occupancy rate dropped from 78.4% to 45.7%. Taking into account the bed occupancy rate of 49.3% between August and December 2017, an estimated number of manpower was 32 (including 12 nurses and 20 nursing assistants), which was less than the actual manpower of 44 (including 11 nurses and 33 nursing assistants). The results suggest a waste of manpower by 12. The estimated cost of running 110 beds at the institute was NTD 4,389,396 which could be covered only by a bed occupancy rate of over 90% when NTD 4,362,930 profit could be generated. The charge of the institute for a client was not significantly different from that of the other five institutes. The net annual profit of the institute was NTD 22,957,000, which ranked the fifth compared to that of the other institutes. On the other hand, the cost was NTD 38,711,000, which ranked the fourth on the list. The percentage profit of the five institutes (i.e., 73, 96, 110, 111, and 200 beds) was 1.9%, -31.8%, -25.9%, -94.2%, and -25.3%, respectively. The results demonstrated a negative profit in the majority (80%) of institutes. In conclusion, the results of the present study showed that the number of beds of a chronic care institute should match the actual demand. A low bed occupancy rate could imply a waste of manpower that contributes to an increase in cost of operation. Moreover, the institute could attain a positive profit margin only when a bed occupancy rate of over 90% was reached, suggesting that operating a chronic care institute is challenging from a financial viewpoint.