Study Of The Financial Distress Question Of Jinan People Hospital

Financial distress question has become a hot topic in the financial field at home and abroad, and in particular, the research for the early warning of financial distress is becoming the focus of concern. In recent years, many Chinese scholars have begun to study financial distress of China's enterprises, but most of these studies are focused on listed companies. With the development of socialist market economy, hospitals have been economic mainstays for a long time, making their own management decisions and taking full responsibilities for their own profits and losses; therefore the risk of financial distress is gradually increasing. But so far, there has been few scholars doing research for the hospital's financial distress question at home and abroad.Nowadays, the medical market is becoming more and more competitive. In order to ensure their normal operation and rapid development, most hospitals expand their scale of operation by raising external capital as a result of the shortage of financial assistance from the government. However, due to the complicated and ever-changing external market as well as the failure of internal management and many other reasons, hospitals often suffer from a serious shortage of cash flow and inability to pay the debt that is due. This will seriously hamper the hospitals' survival and development, once hospitals aren't able to extricate themselves from financial distress. Therefore, the research for financial distress in hospitals has become more and more important and urgent.The object of study of this thesis was the financial distress in hospitals, which was relatively less studied at home and abroad. This broke the previous and inherent recognition of the security and protection of the hospital financial system and clearly exposed the hidden issue of financial distress in hospitals through an intensive study of a typical case—the financial distress of Jinan People Hospital. First, with the help of some related documents on financial distress at home and abroad, this article started with the definition of this concept, which was aimed to provide a theoretical basis for the study of Jinan People's Hospital. Secondly, this thesis adopt comparative study about the financial data from 2003 to 2007. From the direction of the financial operation situation, the capital and assets structure , and the development trend, this thesis conclud many questions of hospital's financial distress. On this basis, from expand fund-raising channels, enhance core competitiveness, improve internal financial management of hospital, establish financial ditress's system of the early warning, reform and improve the hospital accounting system, improve community satisfaction of hospital medical services and establish high-quality financial management team made seven measures to prevent financial distress, which according to the internal and external reasons for the hospital's financial distress and the author's experience in practical work. Meanwhile, it provided a valuable reference for hospitals to strengthen the hospital's own economic operation, to prevent the financial distress, and to formulate reasonable policies concerning finance.