Introduction: Financial liquidity management in hospitals is of great importance in ensuring access to medical care and continuity of health care service provision. It is one of the management’s biggest challenges, which the possibility to conduct health care activity depends on.
Objective: The objective of this study was to assess the financial liquidity of public hospitals, based on the example of public hospitals in Podlaskie Voivodeship in years 2013-2017.
Materials and methods: Revenues, expenses and financial performance levels were analysed and financial liquidity was evaluated with reference to current and quick ratios. Public hospitals, whose founding entity is the Podlaskie Voivodeship Self-government, were selected for the study. The assessment of the financial situation was based on the data from the hospitals’ financial statements for years 2013-2017. The assessment was made with a special reference to financial liquidity.
Results: In years 2013-2017, a steady increase of revenues and expenses was observed in the case-study hospitals. The general financial performance of these entities improved significantly. During the assessment period, the current ratio in the hospitals was average, exceeding the optimal value. In the first hospital group (number of beds>250), the current ratio was below the optimal values (except for 2016). The second hospital group (number of beds<250) was characterised by liquidity ratios above the optimal value.
Conclusions: Management of financial liquidity in hospitals, aimed at maintaining financial liquidity at optimal level, should be the management’s priority action when managing the finances of a health care entity. These actions should be multi-directional and based on information about the financial situation of the hospitals and on the hospital’s ratio analysis, which is vital for the management’s decision making.
Keywords: public health; health economics; financial liquidity; financial management.
National Institute of Public Health – National Institute of Hygiene