© IJARW | ISSN (O) - 2582-1008
April 2023 | Vol. 4 Issue. 10
www.ijarw.com
IJARW1858 International Journal of All Research Writings 185
FACTORS AFFECTING FINANCIAL MANAGEMENT AT PUBLIC
HOSPITALS AFFILIATED TO THAI NGUYEN PROVINCE
HEALTH DEPARTMENT
Dr. Nguyen Thi Nga
1
, Dr. Nguyen Thi Lan Anh
2
Thai Nguyen University of Economics and Business Administration, Vietnam
ABSTRACT
The study focuses on identifying the factors affecting financial management at public hospitals
affiliated to Thai Nguyen province Health Department in the context of public service innovation,
especially perfecting the legal provisions on the autonomy mechanism for public non-business units on
the basis of the degree of financial autonomy, increasing decentralization, and increasing initiative for
public non-business units. The study is based on asking for opinions of 226 survey subjects from 8
public hospitals affiliated to Thai Nguyen province Health Department. The results show that there are
02 objective factors (state's perspective and development orientation; hospital size) and 02 subjective
factors (application of information technology in hospital financial management; system internal
control) have an influence on financial management at public hospitals affiliated to Thai Nguyen
province Health Department. From the above results, some recommendations for public hospitals
affiliated to Thai Nguyen province Health Department to improve financial management.
Keyword: financial management, influencing factors, public hospital
1. INTRODUCTION
Financial management is a part, a stage of socio-
economic management and an integrated
management stage. Financial management is the
management activity concerned with the planning,
organization, monitoring and control of financial
resources. The management and use of financial
resources in non-business units are directly
related to socio-economic efficiency, so there must
be management, supervision and inspection in
order to limit and prevent negative phenomena
and corruption in the exploitation and use of
financial resources, while improving the efficiency
of the use of financial resources. In Vietnam, the
renovation of the public non-business sector,
especially completing the legal provisions on the
autonomy mechanism for public administrative
units on the basis of the degree of financial
autonomy, strengthening the distribution level,
and increasing the initiative for public non-
business units is increasingly evident.
The hospital system in Vietnam includes both
public and private hospitals, in which public
hospitals play a key role in providing health care
services to the people. In general, public hospitals
have good professional quality, but they also
contribute a lot to the increase in health spending.
Hospital autonomy reform in Vietnam began in
the 1990s, with new policies allowing hospitals to
charge fees for services from patients. The
implementation of the autonomy mechanism for
public hospitals has had a positive impact on the
quality of operations, such as: Renovating the
management mechanism; improving service
delivery quality; proactively mobilizing non-
budget resources; proactiving in remuneration
policy, attracting medical staff, a team of experts,
doctors, doctors with high skills, etc. However, it
is not difficult to see that public hospitals need to
strengthen financial management governance and
management to improve operational quality and
performance.
Thai Nguyen province Health Department is a
specialized agency under the People's Committee
of Thai Nguyen province, performing the function
of advising and assisting the Provincial People's
Committee in state management of health.
Currently, Thai Nguyen province Health
Department has 11 affiliated public hospitals,
performing the tasks of preventive medicine,
medical examination, treatment, rehabilitation,...
in the province. Currently, financial management
at public hospitals affiliated to Thai Nguyen
province Health Department faces many