THE DEVELOPMENT OF COST ANALYSIS AND BUSINESS PLANING MODEL TO INCREASE THE EFFICIENCY OF HOSPITAL’S FINANCIAL MANAGEMENT IN THE HEAL

Abstract

This study’s objectives were to develop model for cost analysis and business planning to increase the hospital’s financial management efficiency and evaluate the development results. The research included three steps. Firstly, develop the model for cost analysis and business planning to increase the hospital’s financial management efficiency (In October 2018 - January 2019). Secondly, try out the model with all hospitals under Health Region 10, 71 hospitals in total (In March 2019 - April 2020). Lastly, evaluate the results after the trial by evaluating the model (In May 2020 - June 2019).

Research results indicated that the model for cost analysis and business planning to increase the hospital’s financial management efficiency consisted of two activities. The first activity was the cost analysis and business planning using the computer program FM Costing Project Ket10. The second activity was using the acquired data to manage the hospital’s financial. After the implementation of the developed model, the results from the use of FM Costing Project Ket10 showed the data in the fiscal year studied (fiscal year 2018) of service cost, service income from the each scheme and overall health insurance scheme service, outpatient per time, in-patient per SumAdjRW, the overall health promotion and prevention service scheme per population, and payback rate. in the next fiscal year (fiscal year 2019). Also, the new cost of service, the minimum well-earned budget, outpatient and in-patient of each scheme and overall scheme, the overall health promotion, and prevention service scheme, the estimation of charge and expenses (business planning). In terms of results evaluation of the efficiency of hospital’s financial management, it was found that the score before the development (6.04) was higher than that after the development (5.27) with a statistical significance (p-value<0.001). Furthermore, most Chief Financial Officers (CFO) and related personnel utilized cost and business plan data at a high level (52.2%). However, they had low satisfaction with the development (54.9%) but agreed with the development at a high level (63.3%). They suggested that a data input system should be developed. The guidelines for using analysis results should be set to manage the financial system and inform the relevant personnel for understanding.