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2019, vol. 14, iss. 2, pp. 389-403
Discriminatory models' adaptation in small and medium sized health care entities
University of Economics in Katowice, The Faculty of Finance and Insurance, Department of Accounting, Katowice, Poland
Keywords: financial distress; discriminatory analysis; health care; management; accounting; SME
The article presents the utilization of discriminatory analysis in small and medium sized hospitals. The discriminatory models are used to estimate the probability of researched hospitals bankruptcy. The financial distress is tested with two popular models, one foreign (the Altman Z''Score Model) and one domestic (the Mączyńska Model). The authors also construct their own model, adapted to the specification of medical activity. The results indicate that the author's model is much more suitable for the small and medium sized hospitals, as the rate of prediction is highest. It may indicate that in the health care sector, particularly in small and medium sized companies, different phenomena occur, which affect these companies' financial distress. Despite this, this study indicates that the proposed model is one of the useful tools for their evaluation, especially when combined with other financial as well as non-financial tools. Finally, it was possible to verify the hypothesis that it is possible to create a discriminatory model dedicated to SMEs hospitals, which results are more accurate than using different, not adjusted to health care sector specifics, discriminatory models.
*** (2019) Bankruptcy Law. Journal of Laws, February the 28th, item 498 as amended
*** (2017) The Ordinance of Minister of Health of April 12, 2017 r. on economic and financial indices required for preparation of the analysis and prognosis of economic and financial standing in independent public health care institutions. Journal of Laws, item. 832
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article language: English
document type: Original Scientific Paper
DOI: 10.5937/sjm14-22902
published in SCIndeks: 30/05/2020
peer review method: double-blind
Creative Commons License 4.0