Improving Financial Performance FY02- FY07
Relative to the comparison group of rural hospitals in the Delta not participating in the Delta RHPI Project, hospitals in the Delta that received RHPI consultations:
- Had larger improvements over time in their total margin, better short-term liquidity, were more likely to finance assets through equity, increased their dependence on outpatient revenues and had better improvements over time in their cost efficiency, but increased their days in net accounts receivable;
- Had better operating margins, short-term liquidity, and higher inpatient volumes at baseline.
- These results suggest that the group of rural hospitals in the Delta that received PI Consultations had better baseline values for several indicators of financial performance and had improvement over time across several key dimensions of financial performance. This may be due to many factors including the receipt of PI Consultations by hospitals participating in the Delta RHPI Project. This serves as a starting point in understanding some of the financial issues of these hospitals.
Total margin improved for PI Consultation hospitals from 0 percent in the baseline year to 2.5 percent one year later while this indicator remained relatively stable for the comparison hospitals.
Days in net accounts receivable started higher for the PI consultation hospitals and increased during the post-baseline year while comparison hospitals maintained a stable level for this indicator.
The PI Consultation hospitals financed substantially more of their assets by equity than comparison hospitals. Both hospital groups experienced a small reduction in this indicator during the post-baseline year.
The proportion of all revenues generated from outpatient services increased in PI Consultation hospitals during the post-baseline year while it decreased slightly in the comparison hospitals.
Operating expenses per adjusted discharge decreased by 5 percent in PI Consultation hospitals during the post-baseline year and remained stable in the comparison hospitals.