Author(s)

Yuanwei Li ¹

Affiliation(s)

¹ West China Second University Hospital, Sichuan University, Chengdu, Sichuan, China

Corresponding Author

Yuanwei Li

ABSTRACT

Starting from the theoretical foundation of hospital investment decision-making and financial analysis, this article explores the practical application of hospital investment decision-making methods and financial analysis methods. Firstly, the theories of hospital investment decision-making and financial analysis were introduced, and the relationship between the two was elaborated. Secondly, the methods of hospital investment decision-making were elaborated in detail, including the net present value method, internal rate of return method, and accounting rate of return method in capital budgeting decision-making, as well as sensitivity analysis, simulation analysis, and confidence interval analysis in risk assessment. Next, a comprehensive introduction was given to the financial analysis methods of hospitals, including financial ratio analysis, financial trend analysis, and financial risk analysis. Finally, improvement measures were proposed to address existing issues, such as improving the financial management system, enhancing the application level of financial analysis methods, strengthening financial risk management, and optimizing investment decision-making processes. This article aims to provide theoretical guidance and practical reference for hospital investment decision-making and financial analysis, in order to promote the healthy development of hospitals.

KEYWORDS

Hospital investment decision-making; Financial analysis; Improvement measures

CITE THIS PAPER

Yuanwei Li, The application of hospital investment decision-making and financial analysis methods . Accounting and Corporate Management (2023) Vol. 5: 122-129. DOI: http://dx.doi.org/10.23977/acccm.2023.051219.

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