Management Analysis Using Financial Statements of Medical Institutions

This study conducts a comprehensive financial analysis of general hospitals and higher-level medical institutions in Korea over a seven-year period from 2016 to 2022. Using a dataset of 193 incorporated hospitals, including balance sheets, income statements, and financial ratios, the research empirically identifies patterns in hospital management and structural characteristics. The study employed descriptive statistics, trend evaluation, and ratio analysis, offering a multidimensional view of financial performance. The findings show that hospitals continue to rely heavily on external capital, with debt accounting for 63% of assets in 2022. Rising labor cost ratios were the primary driver of declining profitability. Following the COVID-19 pandemic, medical revenues contracted, while non-medical revenues such as government compensation and donations became decisive factors influencing net income. Differences in profitability and financial structure were evident between public and private hospitals. Liquidity indicators improved during the study period, but asset turnover remained stagnant, highlighting limited operational efficiency. The volatility in operating and net margins after the pandemic illustrates both structural vulnerabilities and external dependency in hospital finances. This study underscores the strategic value of hospital accounting information, providing empirical evidence to inform financial support mechanisms and institutional design in the healthcare sector, thereby guiding sustainable management practices.