Public Hospital Cash Flow Management

Public hospitals are the foundation of China's health industry.The properties of public institutions have led to the late start of cash flow management and the backwardness of management level.In recent years,with the dramatic increase in medical insurance protection,on the one hand,many medical needs have been released,public hospitals have experienced a period of rapid expansion,and the cash outflow from investments has increased significantly.On the other hand,the medical insurance fund has transmitted financial pressure to public hospitals,making hospitals cash flow under great pressure.At the same time,with the continuous deepening of the reform of the medical and health system,the changes in policy such as the cancellation in drug addition revenue and the reduction in financial subsidies has also increased the hospital's cash flow pressure.At present,many public hospitals are facing problems such as large accounts receivable,high repayment pressure,limited investment and financing channels,etc.The hospital's sustainable development has been challenged.But so far most hospitals have not yet established a comprehensive cash flow management system.Strengthening cash flow management has become an urgent task for the hospitals.This article uses the method of normative research to expand research.It first reviews domestic and foreign cash flow management and hospital financial management related research,and then discusses the connotation,function and goals of cash flow management.The paper studies the cash flow management method of public hospitals based on the perspective of the budget,process and life cycle,and analyzes the characteristics of cash flow in public hospitals.Based on the theoretical analysis,the article selects HP hospital as a case,and analyzes its cash flow structure and ratio.Through analysis,it finds that HP hospital has many problems such as an unsound cash flow management system,poor access to cash,transitional dependence on cash flow from medical service activities and huge repayment pressure,etc.The reasons for these problems are found out,concrete suggestions are put forward,and some inspiration for cash flow management in public hospitals is provided.This paper takes the public hospitals as the research object,breaks through the thinking restriction brought by the unsatisfactory cash flow management policy of the public institutions.It supplements the cash flow management research of the industry theoretically and provides reference for the hospital administrator and the government management part in practice.