Case Reports
Analysis of financial status and personnel investment of National Hospital Organization (NHO) in Japan
2018 Volume 19 Issue 2 Pages 108-114
Details
2018 Volume 19 Issue 2 Pages 108-114
Ministry of Health, Labour and Welfare of Japan introduced the Incorporated Administrative Agency system into National Hospital Organization (NHO), which was founded in 2004. The end of March 2014, saw the termination of two terms of five-year management plan in NHO. Each NHO hospital started to settle on management strategy for 5 years from 2004. In the 1st term, NHO group reduced its capital investment and in the 2nd term, NHO restarted to increase capital investment again. But they did not reduced the investment of personnel expense. As a result, they succeeded in the improvement of their financial state. In this study, we investigated the relation between the investment of personnel expenses and the medical profession incomes of all 143 NHO hospitals.
The financial statements of 143 NHO hospitals from 2004 to 2013 were obtained to investigate the financial conditions. We analyzed them with the analytical method which was based on personnel expense according to the classification of 6 groups which NHO classified their hospitals depending on their function and the number of hospital beds.
The 6 groups demonstrated that they increased the personnel investment per one bed. Two groups, especially, the hospitals offering acute-phase medical care with 350-500 beds and the hospitals offering acute-phase medical care with over 500 beds, had kept the continuous increase. These groups and the hospitals offering medical care for disabilities had maintained their medical profits. The group of hospitals offering psychiatric medical care, we observed the change in medical profit which was unrelated to the investment of personnel expenses.
The NHO strictly adheres to the management policy of a financial self-sufficiency, and they entrusted the management judgement of personnel and capital investment to the hospital director. As a result, it became possible to maintain a good financial condition in over 80% of NHO hospitals.
