Journal of IMAB - Annual Proceeding (Scientific Papers)
Publisher: Peytchinski, Gospodin Iliev
ISSN: 1312 773X (Online)
Issue: 2016, vol. 22, issue 3
Subject Area: Medicine
Pages: 1261-1264
DOI: 10.5272/jimab.2016223.1261
Published online: 11 August 2016

J of IMAB 2016 Jul-Sep;22(3):1261-1264
Lyubomira Koeva-Dimitrova Corresponding Autor
Department of Health Economics and Management, Medical University-Varna, Bulgaria.

The capital structure analysis of medical institutions is related to the assessment of their financial sustainability. The degree of their financial sustainability indicates the extent to which the medical institution is exposed to financial risk. This financial risk is related to the use of foreign capital (debts, loans, etc.) and it is defined as the probability of insolvency and possible bankruptcy due to the existence of debts which could not be repaid at some point in the foreseeable future.
Objective: To analyze the capital structure of the medical diagnostic-consultative centers in Varna city and on this basis to assess their long-term solvency and existence of financial risk.
Materials and Methods: The materials for the study are the published annual financial statements (up to 05. 01. 2016) in the Commercial Register for the period from year 2008 to 2014 of all MDCCs (Medical Diagnostic Consultative centers), registered in Varna - 9 in total.
In the study are applied logical-mathematical methods (comparison, grouping, detail, graphical method); financial and accounting analysis (balance sheet analysis; analysis of absolute ratios for financial sustainability).
Results: Upon analysis of the capital structure of MDCC's are studied the main absolute indicators characterizing the conditions for financial sustainability and the existence of financial risk regarding the solvency. A table represents the overall assessment of the degree of financial sustainability of the companies according to the type and structure of the fulfilled criteria. It was ascertained that for year 2014, DCC 3, 4, 5 and 8 have met all the conditions and according to them these hospitals have very high financial sustainability. DCC 7 has an average financial sustainability, DCC 1 and 2 are in a financial crisis and DCC 6 and 9 are facing bankruptcy. It must be emphasized that nearly half of the studied health care organizations (DCC 1, 2, 6 and 9) need urgent intervention by the owners regarding the preparation of remedial measures and programs, revaluation of assets, reduction of capital, reorganization, restructuring and others. Regarding the Municipal DCC's that have the same owner - Varna Municipality, an individual approach for each consultative center should be applied, depending on the different nature and specifics of the activity. A strict monitoring of the financial performance and discipline is necessary.
Conclusion: The capital structure analysis allows to all interested external users of information to evaluate the financial sustainability of the health care organizations, as well as their ability for debts repayment in the future.

Key words: analysis, capital structure, financial sustainability, financial risk, diagnostic- consultative centers, health care organizations, Varna,

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Please cite this article in PubMed Style or AMA (American Medical Association) Style:
Koeva-Dimitrova L. Capital structure analysis of the medical diagnostic-consultative centers in Varna (absolute indicators). J of IMAB. 2016 Jul-Sep;22(3):1261-1264.

Correspondence to: Lyubomira Koeva-Dimitrova, Department of Health Economics and Management, Medical University-Varna; 55, Marin Drinov Str., 9000 Varna, Bulgaria; E-mail:

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Received: 15 May 2016
Published online: 11 August 2016

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