The Impact of Financial Risk Management on Hospital Efficiency: A Systematic Review
DOI:
https://doi.org/10.65049/31t42856Keywords:
Financial Risk Management, Hospital Efficiency, Liquidity, PRISMA, Systematic ReviewAbstract
Abstract: Hospitals face increasingly uncertain financial conditions due to liquidity constraints, reimbursement delays, and rising operational costs, making Financial Risk Management (FRM) essential for maintaining efficiency and financial stability. This study conducts a Systematic Literature Review (SLR) following the PRISMA 2020 protocol using the ScienceDirect database. The Boolean search “financial risk” AND “risk management” AND hospital AND efficiency identified 493 articles, of which 10 peer-reviewed studies published between 2022 and 2025 met the eligibility criteria. Thematic analysis revealed four key mechanisms through which FRM enhances hospital efficiency: (1) liquidity and solvency management via cash-flow and working capital control; (2) strengthened financial governance and risk-sharing arrangements; (3) use of digital technologies, including automation and artificial intelligence, to reduce inefficiencies; and (4) systemic financial protection through insurance schemes and universal health coverage. Overall, effective FRM improves hospital efficiency, resilience, and long-term sustainability. Future research should employ quantitative and longitudinal designs to better capture the dynamic relationship between FRM and hospital efficiency.
Keywords: Financial Risk Management, Hospital Efficiency, Liquidity, PRISMA, Systematic Review
Downloads
References
References
Alami, H., Rivard, L., Lehoux, P., Ahmed, M.A., Soubra, R., Rouquet, R., et.al. (2025). Conflicts and complexities around intellectual property and value sharing of AI healthcare solutions in public-private partnerships: A qualitative study. SSM - Health Systems, Vol. 5. https://doi.org/10.1016/j.ssmhs.2025.100093
Audi, GR., Farmer, E., & Stroud, O. (2025). Organizational structure within multi-hospital systems in rural America effect on financial performance, pp. 1-5. Intelligent Hospital Journal. Vol. 1 (1). https://doi.org/10.1016/j.inhs.2025.100003
Elnaiem, D. E., Ahmed, H. A., & Khalid, M. A. (2023). Global coordination of One Health financial risk governance: Lessons from pandemic preparedness. SSM – Population Health. Vol. 26. https://doi.org/10.1016/S0140-6736(22)01597-5
Ghislandi, S., Renner, A.T., & Varghese, N.E. (2025). The impact of budget cuts on individual patient health: Causal evidence from hospital closures, pp. 1-17. Journal of Health Economics. Vol. 101. https://doi.org/10.1016/j.jhealeco.2025.102975
Halmosi, P., & Aranyossy, M. (2024). Exploring macro-environmental catalysts and barriers of Healthcare 4.0 transformation in Central-Eastern European countries: A comprehensive study in Hungary. Technology in Society. Vol. 74. https://doi.org/10.1016/j.techsoc.2024.102620
Keesee, E., Gurzenda, S., Thompson, K., & Pink, G.H. (2024). Uncompensated Care is Highest for Rural Hospitals, Particularly in Non-Expansion States, pp. 164-170. Medical Care Research and Review. Vol. 81 (2). https://doi.org/10.1177/10775587231211366
Levinson, Z., Godwin, J., & Hulver, S. (2023). Rural Hospitals Face Renewed Financial Challenges, Especially in States That Have Not Expanded Medicaid, pp. 1-8. KFF. https://www.kff.org/
Marchandot, B. & Morel, O. 2025. The Financialization of Healthcare in France: Trends and implications, pp. 2-8. Public Health in Practice. Vol. 9. https://doi.org/10.1016/j.puhip.2025.100620
Ng, R.J., Choo, W. Y., Hairi, N.N., & Ng, C. (2025). The development of private health insurance in Malaysia: A case study analysis exploring its influence on financial risk protection, pp. 1-15. SSM - Health Systems, Vol. 5. https://doi.org/10.1016/j.ssmhs.2025.100142
Oliveira, U.R., Muniz, M.d.A., Anaia, L.A., & Rocha, H.M. (2022). Medication supply chain risk management for a brazilian home care provider: a business sustainability study, pp. 1-15. Cleaner Logistics and Supply Chain. Vol. 3. https://doi.org/10.1016/j.clscn.2021.100018
Pesqueira, A., Sousa, M.J., & Pereira, R. (2025). Individual dynamic capabilities and artificial intelligence in health operations: Exploration of innovation diffusion. Intelligence-Based Medicine. Vol. 11. https://doi.org/10.1016/j.ibmed.2025.100239
Putra, A.M.S., Nasution, M.L., Pratiwi, W., Atmanto, K.A.A., & Paramarta, V. (2024). Literature Review: Financial Management in Hospitals Using Process Improvement Methods, pp. 2562-73. Journal of Indonesian Social Sciences. Vol. 5(10). https://doi.org/10.59141/jiss.v5i10.1460
Raisa, J.F., Rahman, M.S., Mahmud, I., Kaiser, M.S., & Han, D.S. (2025). Transition toward Healthcare 5.0: Impact of COVID-19 in the healthcare industry, pp. 371-89. Journal ICT Express. Vol. 11. https://doi.org/10.1016/j.icte.2025.04.002
Salangwa, C., Munthali, R., Mfune, L., & Nyirenda, V.K. (2025). Public–Private Partnerships and health service delivery in Malawi: The case of Christian Health Association of Malawi (CHAM) facilities in Mzimba district, pp. 1-10. Health Policy OPEN. Vol. 8. https://doi.org/10.1016/j.hpopen.2025.100139
Susilo, D., Lila, W.L.P., Sukmayeti, E., Asante, A., Jan, S., Thabrany, H., et.al. (2025). Can Indonesia Achieve Universal Health Coverage? Organisational and Financing Challenges in Implementing The National Health Insurance System, pp. 1-28. SSM - Health Systems Journal. https://doi.org/10.1016/j.ssmhs.2025.100138
Vukey, E.Y., Ntow-Kummi, G., & Abuosi, A.A. (2023). Assessing the efficiency of regional hospitals in Ghana: Implications for optimal resource allocation for referral hospitals, pp. 1-10. Scientific African Journal. Vol. 21. https://doi.org/10.1016/j.sciaf.2023.e01847
Wagner, T.H., Hoomans, T., Salloum, R.G, & Levy, D.E. (2025). Efficiency in health care: connecting economic evaluations with implementation objectives, pp. 2-11. Implementation Science Communications. Vol. 6 (77). https://doi.org/10.1186/s43058-025-00763-4
Winoto, H.T., Wibowo, J.M., & Widjaja, B.T., (2025). Human capital, competitive advantage, and business performance: A study of Indonesian hospitals, pp. 2-10. Journal of Open Innovation: Technology, Market, and Complexity. Vol. 11. https://doi.org/10.1016/j.joitmc.2025.100515
Wulandari, R.D., Laksono, A.D., Nugraheni, W.P., Suryati, T., Latifah, L., Yunitawati, D., et.al., (2025). Hospital inpatient in Indonesia: Does national health insurance matter?, pp. 1-6. Clinical Epidemiology and Global Health Journal. Vol. 35. https://doi.org/10.1016/j.cegh.2025.102155
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Teguh Tri Sutarno Putra , Winardi Fadilah, Ima Amaliah , Nunung Nurhayati (Author)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
How to Cite
