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Varna Medical Forum

Financial analysis of university hospitals in Bulgaria

Velislava Tasheva, Mincho Minev, Lyubomira Koeva-Dimitrova


Improving the financial condition of university hospitals is a high priority for their owners and stakeholders. One of the most common problems for state-owned hospitals in Bulgaria is their financial instability. The stable financial state of these hospitals is imperative for their increasing development and ensures the success of their socially required functions.

The study aims to analyse the financial health of university hospitals in Bulgaria and draw conclusions regarding the hospitals' long-term solvency and level of financial stability.

The study covers a period of five years, from 2017 to 2021. Key financial indicators are observed to assess the financial state of the predominantly government-owned university hospitals. The primary information source for this study is the annual financial statements published in the Commercial Register.

Results indicate a contrast in the values of financial indicators between hospitals in good and improving financial states and those in deep financial distress. In the latter, there is a high level of dependence on creditors and financial support by the owner. There is a clear correlation between low liquidity and profitability ratios and changes in capital structure, leading to increased indebtedness and deepening processes of reducing owner's equity.

The results of the financial analyses are crucial to the hospital management boards. They provide detailed information on the current financial health and have high predictive value. Every responsible health manager should be familiar with the indicators for assessing the financial status of the structure they manage and take measures when alarming trends are present. The financial analysis should be used as a basis for better-informed management decisions.


university hospitals, analysis, financial health, capital structure, Z-score, financial stability

Full Text


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