+ Site Statistics
+ Search Articles
+ PDF Full Text Service
How our service works
Request PDF Full Text
+ Follow Us
Follow on Facebook
Follow on Twitter
Follow on LinkedIn
+ Subscribe to Site Feeds
Most Shared
PDF Full Text
+ Translate
+ Recently Requested

The WAMI Rural Hospital Project. Part 4: Improving the financial health of rural hospitals



The WAMI Rural Hospital Project. Part 4: Improving the financial health of rural hospitals



Journal of Rural Health 7(5): 526-541



Sound financial management has been identified as a critical component of effective hospital administration. Inadequate financial practices are a leading factor in the failure of hospitals. As part of the Rural Hospital Project (RHP), which operated in six rural Northwest communities from 1985 to 1988, detailed and extensive analyses of financial practices were conducted to identify strengths and weaknesses of the hospitals' financial management. In addition, 15 hours of formal education covering a variety of financial topics were presented to project participants. Results of the evaluation demonstrated that the greatest degree of change occurred in the financial management leadership capacity of the hospitals. All five hospitals, which either had no chief financial officer initially or subsequently experienced a turnover in the position, recruited individuals with strong qualifications. Vacancies in the administrator position in three of the four hospitals were filled by individuals with stronger financial management qualifications than their predecessors. Hospital board finance committees were formed in three of the four communities which previously did not have them. The biggest changes in financial practices occurred in the budgeting processes, which by 1989 better reflected the goals and strategies of the hospital's strategic plans. The financial performance of the six hospitals varied considerably over the study period. As a group, the RHP hospitals continued to require substantial nonoperating subsidies to remain solvent, despite improved financial practices. Despite the methodological limitations of this evaluation, we conclude that the intervention improved the capacity of the hospital administrations' financial leadership, as well as that of the governing boards, and led to substantial improvement in selected financial practices at all sites. Rural hospitals continue to operate in a hostile and precarious financial environment that limits their ability to sustain themselves on the basis of operating revenue alone.

Please choose payment method:






(PDF emailed within 1 workday: $29.90)

Accession: 047573809

Download citation: RISBibTeXText

PMID: 10117236


Related references

The WAMI Rural Hospital Project. Part 3: Building health care leadership in rural communities. Journal of Rural Health 7(5): 511-525, 1991

The WAMI Rural Hospital Project. Part 2: Changes in the availability and utilization of health services. Journal of Rural Health 7(5): 492-510, 1991

The WAMI Rural Hospital Project. Part 5: Community perception of local health care services. Journal of Rural Health 7(5): 542-559, 1991

Part 4: Improving the Financial Health of Rural Hospitals. The Journal of Rural Health 7(5): 526-541, 1991

The Wami Rural Hospital Project Part 6: Overview and Conclusions. The Journal of Rural Health 7(5): 560-574, 1991

The WAMI Rural Hospital Project. Part 6: Overview and conclusions. Journal of Rural Health 7(5): 560-574, 1991

The WAMI Rural Hospital Project. Part 1: Historical and theoretical underpinnings. Journal of Rural Health 7(5): 473-491, 1991

The effect of rural hospital closures on the financial performance of neighboring rural hospitals. Inquiry 33(3): 271-282, 1996

A prognosis for the rural hospital: Part II: Are rural hospitals economically viable?. Journal of Rural Health 1(2): 11-33, 1985

Hospital-sponsored rural health clinics: an effective diversification alternative for rural hospitals. Journal of Rural Health 7(1): 31-38, 1991

Evaluation of a Rural School Health Education Project: II. A Study of the Effectiveness of a Rural School Health Program in Improving the School Environment. Milbank Memorial Fund Quarterly 16(2): 156-172, 1938

MetaStar project focuses on improving emergency transfers at rural hospitals. Wmj 112(6): 269, 2014

Final report: rural financial markets--rural off-farm employment project, Thailand. ESO Ohio State University Dept of Agricultural Economics and Rural Sociology: 83 (1025), 1983

Role of ground water in improving rural health and in mitigating rural poverty in drought prone, semi-arid, hard rock areas in low-income countries the UNESCO-IUGS-IGCP Project 523; GROWNET. Geological Society of America 43.5, 2011

The Developmentof Rural Financial Market of China and Rural Financial Reform-Focused on Rural Credit Unions-. Journal of Sinology and China Studies 34: 273-292, 2004