Yu Hua Yan* and Chih Ming Kung
Objectives: The purpose of this study was to examine the determinants of non-patient revenues in the Taiwan hospitals.
Methods: Using the 2012-2014 financial statements of hospitals in Taiwan as examples, the structure of hospital non-medical activity proceeds are analyzed using descriptive statistics. In addition, nonparametric statistics and regression model were used to investigate the impact of hospital non-medical activity proceeds.
Results: During the sampling period, the hospital non-medical activity proceeds accounted for 9.29% of the total hospital operating revenues, of which the major source is investment income accounting for 28.55% of the hospital non-medical activity proceeds. Among the hospital characteristics, medical centers and hospital non-medical activity proceeds show a positive correlation; medical activity income and loss show a positive correlation with rental income; public and private hospitals and donation and rental income show a negative impact.
Conclusions: Non-medical activity proceeds have growing importance in hospital financial performance. Other than hospital ownership and medical levels that are the main impact factors, non-metropolitan hospitals are also committed to increasing donation and rental income. Hospitals suffering medical losses have more incentives to engage in nonmedical activities in order to lessen their financial strain.