Abstract
In this study, we carried out multiple regression analyses of data on 726 hospitals directly managed by local governments obtained from the Yearbook of Local Public Enterprises, to investigate the factors influencing the changes in ordinary profits and losses, focusing on the fiscal year before the implementation of the public hospital reform plan （fiscal year 2008） and the last fiscal year of the plan （fiscal year 2013）. As a result, 10 variables, including money transferred from other accounts （0.3462）, inpatient unit price （0.3246）, average daily number of inpatients （general wards） （0.2530）, outpatient unit price （0.1352）, number of nurses （regular staff） （0.1338）, research and training costs （0.1277） and number of doctors （regular staff） （0.1265） were identified as exerting a significant positive influence, and 15 variables, including interest on revenue bonds （−0.3358）, retirement benefits （−0.2648）, depreciation expense （−0.2616）, asset shrinkage （−0.2562）, commission fees （−0.2127） and ordinary profit and loss in fiscal year 2008 （−0.2113） were identified as having a significant negative influence. On the other hand, variables such as the average daily number of outpatients, outpatient/inpatient ratio, average number of days of hospitalization （general wards）, average monthly salary of the regular staff in accordance with the example shown in the New Public Hospital Reform Guidelines and changes in management style, exerted no significant influence.
