Last update:
19-Mar-2025

OBJECTIVE To decode and analyze the most recent financial statements of the public hospitals in Greece, with the ultimate goal of mapping their financial profile and highlighting the areas to be improved.

METHOD The survey was conducted on the entire set of public hospitals, for which the published financial statements of 2022 were obtained. Selected financial figures were used for the comprehensive description of the sector and the calculation of the core financial ratios. Descriptive statistics was the main analysis in addition to the concentration ratios of the examined market.

RESULTS Public hospitals were found to have assets of high and increased compared to the recent past value, they are predominantly labor-intensive organizations and maintain low leverage. As a sector, they are soundly concentrated in terms of both balance sheets and income statements, while the size discrepancy between the largest and smallest units is also notable. Perhaps their most characteristic feature is the accounts receivable volume, i.e., the accrued hospitalizations to be collected from the insurance funds, and therefore the long-time periods needed to complete this collection. Thus, the homonymous ratios convey a rather fictitious liquidity status. This phenomenon of stagnant receivables is treated with delaying supplier payments and defensive cash management. On the other hand, the sector achieved low profitability, as expected thanks to its non-profit nature, but it is highly dependent on the questionable practice of transferring earnings from previous fiscal years and the state grant for salaries amount as well.

CONCLUSIONS The financial profile of public hospitals should be unified and updated primarily for accountability reasons. But, its decisive role in supporting critical decisions regarding the allocation of resources should not be forgotten. Moving towards this direction requires interventions, with universal adoption of contemporary accounting standards and development of relevant expertise within public health units as the main objects.

Key words: Financial profile, Financial ratios, Financial statements, Public hospitals.