Financial Performance of Private Hospitals during the Covid-19 Pandemic

Yuyun Umniyatun, Teuku Nebrisa Zagladin Jacoeb, Mochamad Iqbal Nurmansyah, Sopyan, Dinnisa Haura Zhafira Hidayat

2022

Abstract

The impact that occurred in hospitals during the COVID-19 pandemic was the increasing number of inpatients with severe cases. This has caused an increase in length of stay, increased hospital costs due to increased costs for labor, medicine, medical services provided, equipment, personal protective equipment, and other medical and safety supplies, and a decrease in outpatient visits. Further, this has led to instability in the hospitals’ financial conditions. This study aims to analyze the financial performance of private hospitals during the pandemic. The research design is descriptive and quantitative, using secondary data from hospital financial statements for the years 2018-2020. The analysis was conducted by calculating the liquidity ratio, activity ratio, profitability ratio, and cost recovery rate (CRR). Ratio analysis shows the following results: The liquidity ratio with the cash ratio indicator decreased from 0.36 to 0.25, the quick ratio from 0.6 increased to 0.65, and the current ratio from 0.73 increased to 0.79. The activity ratio with the Total Asset Turn Over (TATO) indicator decreased from 2.00 to 1.94, and Fixed Asset Turn Over (FATO) decreased from 2.7 to 2.76. In the profitability ratio with indicators, Return on Assets (ROA) decreased from 1.43% to 1.09%, Return on Equity (ROE) decreased from 3.5% to 2.5%, and Total Margin (TM) decreased from 01.02% to 0.79%. The Cost Recovery Rate (CRR) decreased from 1.03 to 1.02. In conclusion, financial performance as measured by the liquidity ratio, activity ratio, profitability ratio, and cost recovery ratio (CRR) of non-covid private hospitals studied during the COVID-19 pandemic was lower than before Covid 19. This was due to a decrease in the number of visits, which resulted in a lower income. To increase the net profit, hospitals need to immediately open services that were closed during the pandemic by observing health protocols, controlling costs, and increasing utilization of fixed assets.

Paper Citation

in Harvard Style

Umniyatun Y., Jacoeb T., Nurmansyah M., Sopyan. and Hidayat D. (2022). Financial Performance of Private Hospitals during the Covid-19 Pandemic. In Proceedings of the 4th International Conference on Social Determinants of Health - Volume 1: ICSDH, ISBN 978-989-758-621-7, SciTePress, pages 111-117. DOI: 10.5220/0011662300003608

in Bibtex Style

@conference{icsdh22,
author={Yuyun Umniyatun and Teuku Nebrisa Zagladin Jacoeb and Mochamad Iqbal Nurmansyah and Sopyan and Dinnisa Haura Zhafira Hidayat},
title={Financial Performance of Private Hospitals during the Covid-19 Pandemic},
booktitle={Proceedings of the 4th International Conference on Social Determinants of Health - Volume 1: ICSDH,},
year={2022},
pages={111-117},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0011662300003608},
isbn={978-989-758-621-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 4th International Conference on Social Determinants of Health - Volume 1: ICSDH,
TI - Financial Performance of Private Hospitals during the Covid-19 Pandemic
SN - 978-989-758-621-7
AU - Umniyatun Y.
AU - Jacoeb T.
AU - Nurmansyah M.
AU - Sopyan.
AU - Hidayat D.
PY - 2022
SP - 111
EP - 117
DO - 10.5220/0011662300003608
PB - SciTePress