Hospital liability management of financial risk for early warning and management

Abstract: Hospital in debt management the same time, heat will be accompanied by certain risks. If divorced from reality, the lack of science on the levy, excessive debt, the blind on the project, the risk will be great. Thus, the hospitals debt management should be scientific decision-making and capabilities, and exercise the necessary balance of the hospital's financial risk early warning and management.

Keywords:: hospital, since debt management, financial risk, early warning

In the current increasingly competitive market, the new situation, in order to meet people's diverse needs for medical services to address a shortage of funds, hospital administrators adopted business strategy of debt financing to get the necessary funds to achieve the rapid development of the hospital in hospital in China more common phenomenon. However, the hospital in debt, there are bound with a certain amount of risk. Once the hospital debt financing get out of control, there can not pay the due debts on time or even the status of insolvency, it will seriously restrict the development of the hospital, while will give governmental authorities and social stability, macro-management have significant impact. Therefore, the hospitals debt, need to establish a scientific and rational risk analysis and monitoring and early warning mechanisms, which for the hospital to control and prevent the risk of great significance .


First, the concept of debt and liabilities of the hospital's role in business

(A) the concept of hospital debt
The so-called "liability" means the obligor should fulfill certain payment obligations of creditors, the debtor specifically refers to the commitment, measured by money, assets or services required to pay creditors the year 1999, China's Ministry of Finance and the Ministry of Health issued in the United <<hospital financial system>> the first time defined the "hospital liability" concept, as a basic liability of hospitals included in the accounting system of accounting elements, and states: "hospital liability is borne by the hospital can be measured in money, assets or services need to repay the debt. "hospital bills have the following characteristics: 1 liabilities refer to has already occurred, and in the next period of time required to repay financial obligations .2 liabilities can be measured, there is a genuine the amount of .3 or expected under normal circumstances there is a genuine balance of creditors and debt maturity only in the payment of .4, or abandon the claim of creditors, or changes in circumstances before they can disappear.


(B) the role of the hospital debt management
Market economy is a competitive economy, the success of hospital competition in addition to participating in competitive manner, but also depends on their competitive strength. Size is the embodiment of the competitiveness of the hospital is an important aspect. The hospital may be in a relatively short period of time by borrowing to raise sufficient funds and grasp opportunities for development to achieve a virtuous circle of capital flows, thereby enhancing its market competitiveness. At the same time, debt management will enable the hospital to obtain financial leverage effect, improve hospital revenue. Because the hospital is a paid interest on the debt has nothing to do with the hospital's fixed income expenditure, when the hospital a change in the total return on assets when return on equity will lead to more substantial changes, this is the financial leverage effect. Because of this leverage effect exists, when the rate of growth of total assets and net assets earnings growth rate than the overall growth rate of return on assets even more.


(C) of the hospital the risk caused by debt management
Present. In a hospital operating activities balance the potential risks are: the rapid development of medical science and Technology, competitors, the size, quantity, technical level of pressure, unable to meet the increasing demand for medical services and other reasons to bring the Technology risk, due to demand for personalized Health care services, diversification, intensification of market competition, complex series of factors which led to the market risk, due to natural environmental changes, and other unforeseen emergencies as a result of the environmental risk, due to political situation and economic environment, the social risk of social changes, national or regional Health policy, government action adjustment policies arising from the risk of making the hospital administrators unscientific, irrational organization, personnel management as a result of improper use of risk poor liquidity, repayment capacity of poor financial risk resulting from the six areas of risk.

Links to Research Papers Download http://www.hi138.com two hospitals to strengthen debt management and management of financial risk early warning measures

(A) the establishment of hospital financial risk monitoring and early warning processes liabilities
Financial risk refers to the use of early warning indicators and model of the hospital debt, use of funds and financial accounts to conduct monitoring and operation, expansion or risk in the occurrence of alarm signals in time for its full "alarm" function, the real financial risk for hospital diagnostic tool. Hospital Financial Failure higher the sensitivity, the sooner you can identify problems early so that hospital managers should take measures to avoid possible financial risk. in the hospital's financial risk monitoring and early warning, this subject is shown in Figure 1 to design a comprehensive early warning process for hospital managers to provide effective risk management information.


(B) the role of the government's macroeconomic management and regulatory functions
Hospital debt management will inevitably bring some risk, the hospital is good or bad is not only related to the effectiveness of the hospital's own survival and development, but also directly related to the vital interests of the people and social stability. Therefore, the Government should strengthen the hospital's debt financing activities macroeconomic management. regulation improve the guidance and supervision of government functions. Government departments should further regulate the Health care market order, improve the financial regulations and financial management system, timely amendment of the hospital lending policies and management methods, so that the majority of medical institutions in the debt financing clear what to do, how to do so. Meanwhile, the provisions of the deal should increase its efforts to the hospital for significant loss of business decision-makers should be held mainly corresponding economic responsibility and legal liability. in the investment decision-making, government departments of major hospitals should carefully control the amount of project loans and standards, strict control of the hospital building of the blind acts of borrowing. For a certain strength, good momentum of development with high satisfaction of the masses of the hospital, to the extent permitted to implement certain policies may tilted, if necessary, to give some financial support, poor social and economic benefits, long-term loss and the risk too great to repay the hospital in time to take coercive measures, the implementation of financial controls, strictly guard against risk.


(C) improve the performance of external information release system
For effective supervision, strengthen risk control, financial management for a more standardized, some hospitals have the basic conditions, can learn from the experience of enterprises, establish and improve financial performance information release system for the hospital. Through the implementation of hospital financial performance information release system, standard hospital information release of contents and methods, timely, factual and transparent reporting of hospital operational efficiency and the implementation of major investment projects to further improve the hospital funds, debt financing operational transparency, urging hospitals to enhance self-management, self-control ability. Meanwhile, the government authorities departments should strengthen the Health care market factors have profound effects on the development of Research, grasp and understanding of banking and financial markets to other investment institutions and requirements of the response of hospital efforts to improve the hospital's external operating environment, expanding hospital and domestic and foreign financial institutions, venture capital those channels of communication and intermediary organizations to continuously improve the good reputation of the hospital and obtain additional external financial support.


(D) implement a prudent financing strategy
Currently, there are two hospitals in debt management cases: First, moderate debt, to repay the hospital to speed up development, and second, excessive debt, it is difficult to repay, the hospital lost vitality. Thus, in the course of the hospital debt by Jian, the key is to grasp a "degree" and the courage debt, good debt, scientific management, risk avoidance is the key to the success of the hospital debt management. making debt decisions, the hospital should take a prudent financing strategy, fully estimate the uncertainties on the future development of the hospital may have adverse effects, efforts to control risk and to seek financing for a balance between the maximum benefit. it is necessary to try to increase the total amount of debt capital in the proportion of hospitals in order to fully enjoy the benefits of financial leverage, but also in the hospital to avoid the debt capital proportion of the total funds to the hospital too large to bring the corresponding financial risks. At the same time. hospitals should be a reasonable debt management strategy to work out a debt security line. enterprise liability is limited, depending on the nature of the business of The asset-liability ratio has different control lines. Because the hospital is a health institution, asset-liability ratio of the hospital should be strictly controlled, it should be lower than the company. And, given China's reform and change is in the hospital phase, after joining WTO access to medical care market, the entry of foreign medical institutions on such issues as the impact of the hospital, if the debt ratio too low, will influence and even limit the further development of the hospital. the cash flow of the larger hospitals, a large general hospital daily cash flow of millions of dollars, its current ratio, quick ratio are high, then the hospital can be appropriately higher debt ratio.


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