Performance evaluation based on financial data in hospital business

Performance can be defined as the output, that an individual person ora corporation gains its aims which are planned, as a result of its activities.Performance is the indicator that shows the quantity and quality of the work.The main aim of the health centers, in which most of the existinglimited resources are exhausted, is to perform health services with thehighest quality, least cost, with the most appropriate results, and inaccordance with the patient security principles. Health centers have topreserve and sustain their financial performance and profitability in order toprovide cost-effective and quality health service.The main aim of this thesis study is to measure the financialperformance of service departments of the University Hospitals in the wholecountry, by which 11.607.010 patient cures were committed according to2004 datas, and to determine whether there are any relations betweenprofitability rates and efficiency results, or not. For this purpose financialdatas of health services units of a selected University Hospital wereanalyzed.In this study, in addition to performance measurements that aresignificant for the balanced and efficient use of resources, it is aimed toanalyze input and output levels of the units which are good or bad atperformance, and to determine which amount of raise or reduction is neededon input and output levels in order to raise performance levels of the unitswith bad Performance.2002, 2003, 2004 and 2005 years cost accounting datas of theselected University Hospital were used and 55 service units were included tothe study. In analyzing the data, Data Envelopment Analysis, which wasespecially used in last years in financial performance measurement of healthsector, were used in this study. The total inputs and outputs of the units wereevaluated by statistical methods. The datas used were taken from the costaccounting unit of the selected hospital.At the end of the research it is seen that, 23 of the units had neverbeen effective through all the years that were analyzed, 5 units had beenboth effective and profitable only in the year 2002, 3 units had only beeneffective in 2003 and together with these units 4 units had been effective insum, 1 unit had been both effective and profitable only in 2004 and 3 unitshad been both effective and profitable only in 2005.The most significant consequence of this study is that, when theprofitability and effectivity levels of the units were analyzed, it was seen thatthere were not any relations between the two. In other words, the profitabilityof a unit in the analyzed year does not mean that the unit will reach theeffectivity in the same year.