International Journal of Economics, Finance and Management Sciences

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Human Capital as One of the Drivers of Reliable Value of Medical Entities on the Example of International Cardiac Hospital

Received: 01 January 2016    Accepted: 20 January 2016    Published: 18 March 2016
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Abstract

This paper constitutes a contribution to a new discussion on the adequacy of existing company valuation methods with regard to the specific nature of medical entities in Poland. The research method used to fulfil the given scientific aims are: monographic methods, literature research on theory of company valuation, research survey on particular medical entity and its business performance results, statistical quantitative and qualitative analysis, case study analysis. The author points out the shortcomings of existing theories. Calls for taking into account the quality of the activities performed by medical companies in the methodology used for their valuation. As the outcome it is underlined that the human capital at the hospital is one of the key indicators of quality of their activity, translating into the value the entity has for its owner. Thus the scientific conclusion will be that better quality the medical personnel was the better financial ratios were achieved but it doesn’t find it’s reflection in existing company valuation method. Specially in case of medical entities human capital value seems to be crucial according to the business. It is being shown on cardiac hospital example. It should be evaluated on existing theories and looked for more sophisticated valuation method adjustable for health care entities not only in Poland but worldwide.

DOI 10.11648/j.ijefm.20160402.16
Published in International Journal of Economics, Finance and Management Sciences (Volume 4, Issue 2, April 2016)
Page(s) 78-82
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Human Capital, Value of Medical Entity, Mmedical Market, Hospital Market Transformation

References
[1] Cimasi R. J., Healthcare valuation, 2 volume set, the financial appraisal of enteprises, assets and services, ISBN: 978-1-118-83297-4, april 2014, http://eu.wiley.com/WileyCDA/WileyTitle/productCd-1118832973.html.
[2] Couper I. Prof, Jannie Hugo Prof, Management of district hospitals, suggested elements for improvement August 2002, Health Systems Trust, ISBN: 1-919743-68-5, p. 5.
[3] Horosz P., Komercjalizacja szpitali i jej skutki w świetle przepisów polskiego prawa gospodarczego, ABC Wolter Kluwers Business, Warszawa 2011, p. 44.
[4] Koller T., Goedhard M., Wessels D., Valuation University Edition, Measuring and Managing the Value of Companies, McKinsey and Company, 2010.
[5] Molesworth Sue, Rosalyn Beddows, Helen Parker, University of Keely, Staforsshire, Anglia, Self-directed Team Models in Healthcare Settings.
[6] Moshe B. H., Jeffrey L. Callen, the cost of capital, Macaulay’s duration and Tobin’sq., The Journal of financial research, Vol. XII, No. 2, 1989.
[7] Pantafil M., A. Szablewski, Metody wyceny spółki perspektywa klienta i inwestora, Poltext Warszawa 2009, p. 37.
[8] Urbanek G., in: M. Pantafi, A. Szablewski op. cit., p. 179.
[9] Carol Yeh-Yun Lin, Process innovation of an open heart surgical team, National Chengchi University, August 2004, conference paper.
[10] What is Their Potential for Adding Value to the Intellectual Capital of Healthcare Organisations, http://community.mis.temple.edu/mis5102sec401/files/2011/02/Self-directed-Team-Models-in-healthcare.pdf.
[11] Report National Cardiac Consultant, Ministry of Health, www.mz.gov.pl, September 2012.
[12] http://www.ifac.org/system/files/publications/files/Good-Governance-in-the-Public-Sector.pdf.
[13] The workforce for health in globalized context – global shortage and international migration, Christoph Aluttis, Tewabech Bishaw, Martina W. Frank, Glob Health Action. 2014; 7: 10.3402/gha.v7.23611. Published online 2014 Feb 13. doi: 10.3402/gha.v7.23611.
[14] Lindsay Moore Dr., Lesley Craig, Intellectual Capital in Enterprise Success, Strategy Revised, John Wiley and Sons, 2008.
Author Information
  • Finance Faculty, University of Economics in Wroclaw, Wroclaw, Poland

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  • APA Style

    Hanna Kociemska. (2016). Human Capital as One of the Drivers of Reliable Value of Medical Entities on the Example of International Cardiac Hospital. International Journal of Economics, Finance and Management Sciences, 4(2), 78-82. https://doi.org/10.11648/j.ijefm.20160402.16

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    ACS Style

    Hanna Kociemska. Human Capital as One of the Drivers of Reliable Value of Medical Entities on the Example of International Cardiac Hospital. Int. J. Econ. Finance Manag. Sci. 2016, 4(2), 78-82. doi: 10.11648/j.ijefm.20160402.16

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    AMA Style

    Hanna Kociemska. Human Capital as One of the Drivers of Reliable Value of Medical Entities on the Example of International Cardiac Hospital. Int J Econ Finance Manag Sci. 2016;4(2):78-82. doi: 10.11648/j.ijefm.20160402.16

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  • @article{10.11648/j.ijefm.20160402.16,
      author = {Hanna Kociemska},
      title = {Human Capital as One of the Drivers of Reliable Value of Medical Entities on the Example of International Cardiac Hospital},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {4},
      number = {2},
      pages = {78-82},
      doi = {10.11648/j.ijefm.20160402.16},
      url = {https://doi.org/10.11648/j.ijefm.20160402.16},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ijefm.20160402.16},
      abstract = {This paper constitutes a contribution to a new discussion on the adequacy of existing company valuation methods with regard to the specific nature of medical entities in Poland. The research method used to fulfil the given scientific aims are: monographic methods, literature research on theory of company valuation, research survey on particular medical entity and its business performance results, statistical quantitative and qualitative analysis, case study analysis. The author points out the shortcomings of existing theories. Calls for taking into account the quality of the activities performed by medical companies in the methodology used for their valuation. As the outcome it is underlined that the human capital at the hospital is one of the key indicators of quality of their activity, translating into the value the entity has for its owner. Thus the scientific conclusion will be that better quality the medical personnel was the better financial ratios were achieved but it doesn’t find it’s reflection in existing company valuation method. Specially in case of medical entities human capital value seems to be crucial according to the business. It is being shown on cardiac hospital example. It should be evaluated on existing theories and looked for more sophisticated valuation method adjustable for health care entities not only in Poland but worldwide.},
     year = {2016}
    }
    

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    AB  - This paper constitutes a contribution to a new discussion on the adequacy of existing company valuation methods with regard to the specific nature of medical entities in Poland. The research method used to fulfil the given scientific aims are: monographic methods, literature research on theory of company valuation, research survey on particular medical entity and its business performance results, statistical quantitative and qualitative analysis, case study analysis. The author points out the shortcomings of existing theories. Calls for taking into account the quality of the activities performed by medical companies in the methodology used for their valuation. As the outcome it is underlined that the human capital at the hospital is one of the key indicators of quality of their activity, translating into the value the entity has for its owner. Thus the scientific conclusion will be that better quality the medical personnel was the better financial ratios were achieved but it doesn’t find it’s reflection in existing company valuation method. Specially in case of medical entities human capital value seems to be crucial according to the business. It is being shown on cardiac hospital example. It should be evaluated on existing theories and looked for more sophisticated valuation method adjustable for health care entities not only in Poland but worldwide.
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