Profit Margin Analysis of Operational Units in a Selected Educational Hospital

The analysis of costs and incomes is an important tool for planning, controlling, monitoring and evaluating hospitals to reduce abnormal costs. The purpose of this study was to analyze the profit margins of operating units in a selected educational hospital. This descriptive cross-sectional study was carried out in a selected educational hospital affiliated to Iran University of Medical Sciences, Tehran, Iran in 2019. Cost information was collected through a researcher-made checklist. At first, direct costs were calculated separately from cost centers and then absorbed into operational units by the absorption method. The income of operating units was extracted by studying the files of 65,817 outpatient cases and hospitalized patients in the study year and finally, the operating margin of the units was calculated. Calculations were done through Excel 2017 software. Direct and indirect costs accounted for 66% and 34% of the total operating costs of operational units. Total revenue from providing services in the studied units was 1674074 $ and the cost of these units was estimated about 3488888 $. Other than the sub-specialty units of Gynecology and Pediatrics, Reconstructive Surgery Which had operating margins of 39% and 36% respectively, the rest of hospital units had significant operational losses.  Improving the processes of supplying the required facilities and services, paying attention to the human resources management and labor force and increasing the quantity and quality of services seem to be necessary.