Article evaluated the financial performance of ABC hospital within the period of 2012 to 2013 to overcome the problems related to how to measure and present its financial performance using ratio analysis. These financial ratios were employed to measure the liquidity, assets utilization, long-term solvency and profitability of the hospital. This analysis was conducted in order to prove whether the hospital has been managed efficiently or not in accordance to Indonesian Hospital Quality Accreditation as stated in its clause on Administration Standard No. 5 Parameter No. 3 that the hospital financial management shall be conducted in appropriate way in order to guarantee its operation efficiently. The result show that overall financial performance of ABC hospital increase considerably in those two years. A significant change is occurred on its solvency ratio which is decreased from -2% to -8%, indicating its loose dependency due to its founders strong financial support. Therefore, based on this favorable result, the hospital is regarded to have efficient hospital management and thus, together with other standard fulfillment, it is accredited by Indonesian Health Ministry.
Jonny. (2016). Efficiency Analysis of Financial Management Administration of ABC Hospital using Financial Ratio Analysis Method. Binus Business Review, 7 (1), 65-69.
efficiency analysis, financial ratio, liquidity ratio, assets utilization ratio, long-term solvency ratio, profitability ratio