The Analysis of Liquidity Ratios, Efficiency Ratios, Leverage Ratios And Ability Survive Ratios of Government Hospitals In Chiang Rai Province The Analysis of Liquidity Ratios, Efficiency Ratios, Leverage Ratios And Ability Survive Ratios of Government Hospitals In Chiang Rai Province

Abstract

The purpose of this research was to study and comparatively analyze the tendency of liquidity ratio, efficiency ratio, leverage ratios, and survival ability ratio of government hospitals in Chiang Rai Province in the fiscal year of 2015 to 2019 sectioned into groups according to the hospital size. This study also analyzes causes and solutions for lacking of liquidity ratio, low efficiency ratio, high leverage Ratios, and the low level of survival ability ratio of government hospitals holding the financial statements of fiscal year of 2015 to 2019 which involved 18 government hospitals in Chiang Rai province. The analysis covered four aspects including liquidity ratio, efficiency ratio, leverage ratio and survival ability ratio by using the standard means criteria in measuring financial ratio. In the case that the tendency to fair or low levels are detected, the researcher would interview the accountants of the hospital to review the causes and solutions.

The results showed that, in overall, liquidity ratio and leverage ratio were in the high level. The survival ability ratio was in fair level while efficiency ratio was in low level. The analysis by hospital size revealed that Hub Hospitals, Node Hospitals, Large Community Hospitals, Mid-sized Community Hospitals, and Small-sized Community Hospitals  showed good level of liquidity ratio and leverage ratio. The survival ability ratio were in fair level but the efficiency ratio was found at low level. This showed that government hospitals in Chiang Rai province faced a problem and the tendency was income from services lower than operation costs. Therefore, the hospitals must completely recognize all hospital incomes, and must have hospital expense management system. Regarding the problem of medical fee collection system, the hospitals must expedite the collection of medical fees in time to resolve. Regarding the problem of hospital asset utilization for income generation or exceeding assets investment, the hospitals must review the assets’ existence and accumulated depreciation against assets control registration and experimental budget in accounting system. Regarding the problem of small hospitals delayed conversion of their materials into income resulting remaining materials in the inventory for a long time, the hospitals must procure materials according to the purchasing plan, record receiving materials into the warehouse before distributing the materials to the sub-department, and report all remaining materials to the accounting team for accurate materials recording system. Regarding the problem of inefficient debt management system, the hospitals should perform procurement process correctly, implement internal control system to review existence of creditors and creditors’ registration control, and develop a report for the hospital executives.

Keywords : Government Hospitals, Liquidity Ratios, Efficiency Ratios, Leverage

     Ratios, Ability Survive Ratios