Author(s)

Nozomu Mandai^1*, Mayumi Watanabe^1,2,3

¹Ibaraki Prefectural University of Health Sciences, Ibaraki, Japan.
²Kansai University of Health Sciences, Osaka, Japan.
³Faculty of Science and Engineering, Chuo University, Tokyo, Japan.

Background: While public municipal hospitals in Japan are supported by public financing and are less likely to fail than private hospitals, more than half are in financial deficit. Hospitals running at a deficit may have poorer outcomes and less investment in maintenance of human or physical capital, as well as increased rates of patient adverse events. We sought to clarify the relationship between municipal hospital surpluses or deficits and salary expenditures. Methods: We extracted financial data for 253 general hospitals of 300 beds or more from financial statements for the 2013 fiscal year available in the Yearbook of Public Firms, Edition for Hospital. From these data, we calculated account balance ratios and compared the average value of the ratio of labor to the output (salary ratio) for each group using analysis of variance (ANOVA). Results: The salary ratios of hospitals in the surplus group were significantly lower than the salary ratios of hospitals in the deficit group (55.5% vs. 49.4%; p < 0.001). In the deficit group, there was no difference between the average values of salary ratios among the three-bed count groups (mean salary ratio: 57.2% vs. 54.4% vs. 53.0%; ANOVA p = 0.342). In the surplus group, the average value of salary ratios was different among the three-bed count groups (mean salary ratio: 53.0% vs. 48.5% vs. 47.4%; ANOVA p = 0.012). In addition, there was a significant difference in mean value between the 300-bed group and ≥500 beds group (mean salary ratio: 53.0% vs. 47.4%; p = 0.002). Conclusion: This study suggests that maintaining a favorable salary ratio to the current account balance is a useful proxy of fiscal health, and interventions to improve the salary ratio may be effective in improving municipal hospital management. Furthermore, among well-managed municipal hospitals, larger hospital size may confer some advantage in purchasing power.

Hospital Finance, Salary Ratio, Public Hospital, Current Account Balance Ratio

Mandai, N. and Watanabe, M. (2019) Relationship between the Current Account Balance Ratio and Salary Ratio in Japanese Municipal Hospitals. Health, 11, 1591-1597. doi: 10.4236/health.2019.1112120.