WHAT DO WE KNOW ABOUT THE FINANCIAL SUSTAINABILITY OF PRIVATE HOSPITALS? EVIDENCE FROM A PRIVATE HOSPITAL CHAIN

Authors : Doğancan Çavmak

Pages : 61-73

Doi:10.31671/doujournal.1407556

View : 30 | Download : 30

Publication Date : 2025-01-24

Article Type : Research Paper

Abstract :Private for-profit healthcare providers significantly contribute to health system in Türkiye. Therefore, the ability of the private providers to sustain their operations is critical for the success of the health system. At this point, the sector\\\'s financial sustainability emerges as an important determinant. This study aims to assess the financial sustainability of private healthcare sector in Türkiye. To explore this phenomenon, data for a decade were obtained from a private hospital chain which has nine hospitals in different regions in Türkiye. Given the multidimensional structure of financial sustainability, the evaluation was carried out across four categories encompassing various variables such as real growth rate, profitability ratios, asset turnover rates, and cash conversion cycle. Based on the variables, a financial sustainability index was formed. The analyses showed that the hospital’s level of financial sustainability had a fluctuating trend and exhibited a decline for a significant portion of the analysis period. Despite real increases in sales, relatively stable profitability ratios, and high asset turnover rates, it was determined that high production costs and prolonged collection period for accounts receivable adversely impacted the level of financial sustainability.
Keywords : Özel Hastaneler, Finansal Sürdürülebilirlik, Finansal Analiz, Sağlık Yönetimi