FINANCIAL PERFORMANCE OF COUNCIL DESIGNATED HOSPITALS (CDHS) AND VOLUNTEERING AGENCY HOSPITALS (VAHS) IN TANZANIA
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Abstract
The primary objective of this paper is to analyze the financial performance of council designated hospitals (CDHs) and volunteering agency hospitals (VAHs) in Tanzania. Specifically, the study involves analysis of financial performance of the two categories of hospitals based on operating margin, growth rate in equity, current ratios, days cash on hand, equity financing and average age of plant during 2011/12 -2014/15. Ratio analysis technique was employed in analyzing financial performance of the two categories. Data were extracted from respective hospitals’ annual reports and collected using the stratified sampling procedure whereby Lake, Eastern, Western, Southern and Northern Zone were treated as stratum. The aim of using stratified sampling aimed at obtaining representation of the total population (90 faith based private hospitals) in the country. Result revealed that Hospitals in both categories have good liquidity position, evidenced by current ratios which is above the required benchmark of 2.0 times, as well as reasonably average days cash on hand (DCH) of at least 20 days. However, CDHs seems to outperform the VAHs in terms of liquidity over the sampled period.
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References
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