Next Pandemic? Yes, Please! How Covid-19 Pandemic Improved the Financial Condition of Polish Hospitals

Agnieszka Bem; Paweł Prędkiewicz; Rafał Siedlecki; Paulina Ucieklak-Jeż; Jan Žukovskis

doi:10.18778/2391-6478.S1.2023.04

Authors

Agnieszka Bem Wrocław University of Economics, Faculty of Economics and Finance https://orcid.org/0000-0003-1653-6558
Paweł Prędkiewicz Wrocław University of Economics, Faculty of Economics and Finance https://orcid.org/0000-0002-8965-665X
Rafał Siedlecki Wrocław University of Economics, Faculty of Economics and Finance https://orcid.org/0000-0001-7444-4737
Paulina Ucieklak-Jeż Jan Dlugosz University in Czestochowa, Faculty of Law and Economics
Jan Žukovskis Vytautas Magnus University

DOI:

https://doi.org/10.18778/2391-6478.S1.2023.04

Keywords:

hospital financial condition, pandemic, operating margin, ROA

Abstract

The purpose of the article. The study aims to analyze how these special rules of financing during the pandemic affected the financial situation of hospitals in Poland.

Methodology. We analyzed a sample of 86 Polish hospitals from 2019 to 2021. The financial condition is assessed based on financial ratios and the synthetic measure M1. We employ the Kruskall-Wallis test to confirm the differences between the values of financial ratios in the analyzed period.

Results of the research. We confirm that due to the special rules and financing, combined with underperformance, the financial condition of Polish hospitals has slightly improved – especially in the case of operating margin, EAT to debt ratio and ROA.

Downloads

Download data is not yet available.

References

Bai G., Jiménez D., Phan P., Quintero LE, Rebucci A., Sunal X., (no date), The Financial Fragility of For-profit Hospitals: Evidence from the COVID-19 Pandemic, National Bureau of Economic Research.
Google Scholar

Behzadifar M., Aalipour A., Kehsvari M., Darvishi Teli B., Ghanbari M. K., Gorji H. A., Bragazzi N. L. (2022), The effect of COVID-19 on public hospital revenues in Iran: An interrupted time-series analysis, PLoS ONE, https://doi.org/10.1371/journal.pone.0266343
Google Scholar DOI: https://doi.org/10.1371/journal.pone.0266343

Bem A., Prędkiewicz K., Prędkiewicz P., Ucieklak-Jeż P.(2014a), Hospital’s Size as the Determinant of Financial Liquidity, in: European Financial Systems 2014. Proceedings of the 11th International Scientific Conference, pp. 41–48.
Google Scholar

Bem A., Predkiewicz K., Predkiewicz P., Ucieklak-Jez, P. (2014b), Determinants of Hospital’s Financial Liquidity, 17th International Conference Enterprise and Competitive Environment 2014 (preprint), https://doi.org/10.1016/S2212-5671(14)00317-7
Google Scholar DOI: https://doi.org/10.1016/S2212-5671(14)00317-7

Bem A., Predkiewicz K., Predkiewicz P., Ucieklak-Jez P. (2014c), Hospital’s Size as the Determinant of Financial Liquidity, In Proceedings of the 11th international scientific conference European financial systems, pp. 41-48
Google Scholar

Bem A., Prędkiewicz P., Ucieklak-Jeż P., Siedlecki R.(2015a), Impact of Hospital’s Profitability on Structure of its Liabilities, Strategica 2015 proceedings, pp. 657-665
Google Scholar

Bem A., Predkiewicz P., Ucieklak-Jez P., Siedlecki R. (2015b), Profitability versus Debt in Hospital Industry, European Financial Systems 2015: Proceedings of the 12th international scientific conference, pp. 20-27.
Google Scholar

Bem A., Siedlecki R., Prędkiewicz P., Ucieklak-Jeż P., Hajdikova T. (2015c), Hospital’s financial health assessment. Gradient method’s application. In Enterprise and competitive environment. Conference proceedings, pp. 76-85
Google Scholar

Bem A., Siedlecki R., Ucieklak-Jeż P., Hajdikova T. (2017), Model of Hospitals’ Financial Distress Forecasting: Comparative Study, in: New Trends in Finance and Accounting, pp. 709–721, https://doi.org/10.1007/978-3-319-49559-0
Google Scholar DOI: https://doi.org/10.1007/978-3-319-49559-0_65

Bem A., Siedlecki R., Prędkiewicz P., Gazzola P., Ryszawska B., Ucieklak-Jeż P. (2019). Hospitals’ financial health in rural and urban areas in Poland: Does it ensure sustainability? Sustainability, 11(7), https://doi.org/10.3390/su11071932
Google Scholar DOI: https://doi.org/10.3390/su11071932

Cantor J., Sood N., Bravata D. M., Pera M., Whaley C. (2022), The impact of the COVID-19 pandemic and policy response on health care utilization: Evidence from county-level medical claims and cellphone data, Journal of Health Economics, 82, 102581 https://doi.org/10.1016/j.jhealeco.2022.102581
Google Scholar DOI: https://doi.org/10.1016/j.jhealeco.2022.102581

Carroll N.W., Smith D.G. (2020), Financial Implications of the COVID-19 Epidemic for Hospitals: A Case Study, Journal of Health Care Finance, 46(4), pp. 11-22
Google Scholar

Chmielowiec B., Raczek M., Chmielewski J., Puścion M., Florek-Łuszczki, M. (2022), Accessibility to healthcare services in Poland at the initial stage of SARS-CoV-2 pandemic – patient perspective, Medycyna Ogólna i Nauki o Zdrowiu, 28(3), pp. 208–216, https://doi.org/10.26444/monz/154663
Google Scholar DOI: https://doi.org/10.26444/monz/154663

Coughlin T.A., Ramos C., Samuel-Jakubos H. (2020), Safety Net Hospitals in the Covid-19 Crisis: How Five Hospitals Have Fared Financially Data and Methods, Washington, DC: Urban Institute, 13
Google Scholar

Dopfer C., Wetzke M., Zychlinsky Scharff A., Mueller F., Dressler F., Baumann U., Happle C.(2020), COVID-19 related reduction in pediatric emergency healthcare utilization - A concerning trend, BMC Pediatrics, 20(1), https://doi.org/10.1186/s12887-020-02303-6
Google Scholar DOI: https://doi.org/10.1186/s12887-020-02303-6

Fried J.E., Liebers D.T., Roberts, E.T. (2020), Sustaining Rural Hospitals after COVID-19: The Case for Global Budgets, JAMA - Journal of the American Medical Association, pp. 137–138, https://doi.org/10.1001/jama.2020.9744
Google Scholar DOI: https://doi.org/10.1001/jama.2020.9744

Grudziaż-Sękowska J., Sękowski K., Kobuszewski B. (2022), Healthcare Utilization and Adherence to Treatment Recommendations among Children with Type 1 Diabetes in Poland during the COVID-19 Pandemic, International Journal of Environmental Research and Public Health, 19(8), https://doi.org/10.3390/ijerph19084798
Google Scholar DOI: https://doi.org/10.3390/ijerph19084798

GUS (2022), Wydatki na ochronę zdrowia w latach 2019-2021.
Google Scholar

György A., Simionescu I. (2021), The Impact of COVID-19 on the Romanian Hospitals’ Expenses. A Case study Toward the Financial Resilience After the Pandemic, Transylvanian Review of Administrative Sciences, pp. 22–36, https://doi.org/10.24193/tras.SI2021.2
Google Scholar DOI: https://doi.org/10.24193/tras.SI2021.2

He M., Jessri M., Zhang H. (2022), The impact of COVID-19 on hospitals’ financial performance: Evidence from California hospitals, International Journal of Healthcare Management (Preprint), https://doi.org/10.1080/20479700.2022.2118168
Google Scholar DOI: https://doi.org/10.5465/AMBPP.2022.12263abstract

Hu X., Jin W., Yang A., Hu Z. (2022), Management of capital liquidity in public hospitals under the epidemic situation of COVID-19, Frontiers of Public Health, 10(977221), pp. 1–5.
Google Scholar DOI: https://doi.org/10.3389/fpubh.2022.977221

Khullar D., Bond A.M., Schpero W.L. (2020), COVID-19 and the Financial Health of US Hospitals, JAMA - Journal of the American Medical Association, 323(21), pp. 2127–2128, https://doi.org/10.1001/jama.2020.6269
Google Scholar DOI: https://doi.org/10.1001/jama.2020.6269

Kim Y., Gordon A., Rowerdink K., Scott L. H., Chi,W. (2022), The Impact of the COVID-19 Pandemic on Health Care Utilization Among Insured Individuals With Common Chronic Conditions BRIEF REPORT, Medical Care, 60(9).
Google Scholar DOI: https://doi.org/10.1097/MLR.0000000000001747

Küçük A. (2022), Financial Impacts of Covid-19 Pandemic for Turkish Public Hospitals, Süleyman Demirel Üniversitesi Vizyoner Dergisi, 13(34), pp. 354–363, https://doi.org/10.21076/vizyoner.993956
Google Scholar DOI: https://doi.org/10.21076/vizyoner.993956

Lalani K., Helton J., Vega F. R., Cardenas-Turanzas M., Champagne-Langabeer T., Langabeer J. R. (2023). The Impact of COVID-19 on the Financial Performan-ce of Largest Teaching Hospitals. Healthcare (Switzerland), 11(14). https://doi.org/10.3390/healthcare11141996
Google Scholar DOI: https://doi.org/10.3390/healthcare11141996

Lee M., You M. (2021), Avoidance of healthcare utilization in south korea during the coronavirus disease 2019 (Covid-19) pandemic, International Journal of Environmental Research and Public Health, 18(8), https://doi.org/10.3390/ijerph18084363
Google Scholar DOI: https://doi.org/10.3390/ijerph18084363

Li K., Al-Amin M., Rosko M.D. (2023), Early Financial Impact of the COVID-19 Pandemic on U.S. Hospitals, Journal of Healthcare Management/American College of Healthcare Executives, NLM (Medline), pp. 268–283, https://doi.org/10.1097/JHM-D-22-00175
Google Scholar DOI: https://doi.org/10.1097/JHM-D-22-00175

Melnick G., Maerki S. (2021), The Financial Impact of COVID-19 on California Hospitals, California Health Care Foundation, Retrieved January, 12, 2021
Google Scholar

Mikos M., Urbaniak M. (2017), Dostępność świadczeń zdrowotnych finansowanych ze środków publicznych w Polsce a funkcjonowanie sieci szpitali, Zdrowie Publiczne i Zarządzanie, pp. 197–206.
Google Scholar

Miszczyńska K., Miszczyński P. (2021), Debt, ownership, and size: The case of hospitals in Poland, International Journal of Environmental Research and Public Health, 18(9). https://doi.org/10.3390/ijerph18094596
Google Scholar DOI: https://doi.org/10.3390/ijerph18094596

Mularczyk-Tomczewska P., Zarnowski A., Gujski M., Jankowski M., Bojar I., Wdowiak A., Krakowiak J.(2022), Barriers to accessing health services during the COVID-19 pandemic in Poland: A nationwide cross-sectional survey among 109,928 adults in Poland, Frontiers in Public Health, pp. 1–11.
Google Scholar DOI: https://doi.org/10.3389/fpubh.2022.986996

Narodowy Fundusz Zdrowia (2021) sprawozdanie z działalności Narodowego Funduszu Zdrowia za 2020 rok.
Google Scholar

Narodowy Fundusz Zdrowia (2022), Sprawozdanie z działalności Narodowego Funduszu Zdrowia za 2021 rok.
Google Scholar

Naruć, W. (2022). The impact of the COVID-19 pandemic on the financial and asset situation of Polish infectious diseases hospitals. WSEAS Transactions on Business and Economics, 19, pp. 542-554.
Google Scholar DOI: https://doi.org/10.37394/23207.2022.19.49

Niżnik, J. (2021), Wpływ Covid-19 na systemy ochrony zdrowia w Czechach i Polsce, Horyzonty Polityki, 12(40), pp. 133–155, https://doi.org/10.35765/HP.2132
Google Scholar DOI: https://doi.org/10.35765/hp.2132

Pietryka E. (2018), Finansowanie systemu opieki zdrowotnej w Polsce w kontekście wprowadzenia systemu sieci szpitali, Zarządzanie i Finanse Journal of Management and Finance, 16(3), pp. 229-244
Google Scholar

Prędkiewicz K., Prędkiewicz P. (2013), Zarządzanie kapitałem obrotowym szpitali samorządowych w Polsce, Zarządzanie i Finanse, 2(2), pp. 311–323
Google Scholar

Prędkiewicz K., Prędkiewicz P., Węgrzyn M. (2014), Rentowność szpitali samorządowych w Polsce, Nauki o Finansach, (20), pp. 28–43
Google Scholar DOI: https://doi.org/10.15611/nof.2014.3.02

Quentin W., Albreht T., Bezzina A., Bryndova L., Dimova A., Gerkens S., Kowal-ska-Bobko I., Mantwill S., Or Z., Rajan S., Theodorou M., Tynkkynen L.-K., Waitzberg, R., & Winkelmann, J. (2020), Adjusting Hospital Inpatient Payment Systems for COVID-19, Eurohealth, 26(2), pp. 88–92.
Google Scholar

Roy C. M., Brennan Bollman E., Carson L. M., Northrop A. J., Jackson E. F., Moresky R. T. (2021), Assessing the indirect effects of COVID-19 on healthcare delivery, utilization and health outcomes: A scoping review, European Journal of Public Health, Oxford University Press, pp. 634–640, https://doi.org/10.1093/eurpub/ckab047
Google Scholar DOI: https://doi.org/10.1093/eurpub/ckab047

Siedlecki R., Bem A., Predkiewicz P., Ucieklak-Jez P. (2015), MEASURES OF HOSPITAL’S FINANCIAL Condition - empirical Study, In Strategica. Local versus global. International academic conference, pp. 666-675.
Google Scholar

Synhorst D. C., Bettenhausen J. L., Hall M., Thurm C., Shah S. S., Auger K. A., Williams D. J., Morse R., Berry J. G. (2021), Healthcare Encounter and Financial Impact of COVID-19 on Children’s Hospitals, Journal of Hospital Medicine, 16(4), pp. 223–226, https://doi.org/10.12788/jhm.3572
Google Scholar DOI: https://doi.org/10.12788/jhm.3572

Trentini F., Marziano V., Guzzetta G., Tirani M., Cereda D., Poletti P., Piccarreta R., Barone A., Preziosi G., Arduini F., Della Valle P. G., Zanella A., Grosso F., Del Castillo G., Castrofino A., Grasselli G., Melegaro A., Piatti A., Andreassi A., … Merler S. (2022), Pressure on the Health-Care System and Intensive Care Utilization During the COVID-19 Outbreak in the Lombardy Region of Italy: A Retrospective Observational Study in 43,538 Hospitalized Patients, American Journal of Epidemiology, 191(1), pp. 137–146, https://doi.org/10.1093/aje/kwab252
Google Scholar DOI: https://doi.org/10.1093/aje/kwab252

Waitzberg R., Gerkens S., Dimova A., Bryndová L., Vrangbæk K., Jervelund S. S., Birk H. O., Rajan S., Habicht T., Tynkkynen L. K., Keskimäki I., Or Z., Gandré C., Winkelmann J., Ricciardi W., de Belvis A. G., Poscia A., Morsella A., Slapšinskaitė A., … Quentin W. (2021), The Structure and Financing of Health Care Systems Affected How Providers Coped With COVID-19, Milbank Quarterly, 99(2), pp. 542–564, https://doi.org/10.1111/1468-0009.12530
Google Scholar DOI: https://doi.org/10.1111/1468-0009.12530

Waitzberg R., Quentin W., Webb E., Glied S. (2022), Balancing financial incentives during COVID-19: A comparison of provider payment adjustments across 20 countries, Health Policy, 126(5), pp. 398–407, https://doi.org/10.1016/j.healthpol.2021.09.015
Google Scholar DOI: https://doi.org/10.1093/eurpub/ckab164.711

Wang Y., Bai G., Anderson G. (2022), COVID-19 and Hospital Financial Viability in the US, JAMA Health Forum, 3(5), https://doi.org/10.1001/jamahealthforum.2022.1018
Google Scholar DOI: https://doi.org/10.1001/jamahealthforum.2022.1018

Wiśniewski T. (2023), Efficiency of Polish Hospitals in Years 2012–2021, Scientific Papers of Silesian University of Technology. Organization and Management Series, pp. 653–684, https://doi.org/10.29119/1641-3466.2023.187.35
Google Scholar DOI: https://doi.org/10.29119/1641-3466.2023.187.35

Xiao H., Dai X., Wagenaar B. H., Liu F., Augusto O., Guo Y., Unger J. M. (2021), The impact of the COVID-19 pandemic on health services utilization in China: Time-series analyses for 2016–2020, The Lancet Regional Health - Western Pacific, https://doi.org/10.1016/j.lanwpc.2021.100122
Google Scholar DOI: https://doi.org/10.1016/j.lanwpc.2021.100122

Xu S., Glenn S., Sy L., Qian L., Hong V., Ryan D. S., Jacobsen S. (2021), Impact of the COVID-19 pandemic on health care utilization in a large integrated health care system: Retrospective cohort study, Journal of Medical Internet Research, 23(4), https://doi.org/10.2196/26558
Google Scholar DOI: https://doi.org/10.2196/26558