Factors Impacting Hospital Financial Performance in Taiwan Following Implementation of National Health Insurance

  •  Jiunn Chiou Chiang    
  •  Tsai Yi Wang    
  •  Feng-Jui Hsu    


This research discusses factors influencing hospital performance following the implementation of Taiwan’s National Health Insurance scheme. Regression analysis showed that the out-patient revenue ratio and fixed assets ratio were significantly and positively associated with operating margin and return on fixed assets. Liability conditions and average length of stay were negatively associated with operating margin. Return on fixed assets was positively associated with the use of hi-tech equipment and negatively associated with average length of stay. Implications of findings and recommendations to improve the performance of Taiwan hospitals are discussed.

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