2.2 Operating Performance and Financial Condition

Within the framework of sustainable healthcare system operations and public financial governance, Taichung Armed Forces General Hospital manages its finances through a non-operating special fund system. It fully complies with the relevant budget preparation and final account management regulations of the Armed Forces Production and Service Operations Fund. The hospital prepares and discloses financial information in accordance with the “Medical Business Income and Expenditure Statement.” This statement serves as a crucial basis for reviewing the hospital’s medical business fund operating results and is audited by the Audit Office to verify the accuracy and reliability of the financial information, thereby enhancing the credibility and transparency of the reports. This approach ensures that, while providing medical services to both military personnel and civilians, the institution maintains financial stability and sustainable operational capacity.

Regarding financial transparency and governance responsibilities

The hospital adheres to the principles of openness and transparency by regularly disclosing financial information on designated platforms, such as the National Health Insurance Administration. This practice ensures that supervisory authorities, stakeholders, and the public can promptly understand the hospital’s operational status and resource utilization. This information disclosure mechanism not only strengthens the accountability of public medical institutions but also enhances the credibility of financial management and reinforces the foundation of social trust, enabling financial governance and sustainable development goals to support each other effectively.

Regarding overall assets and operational scale

The hospital currently has a medical service capacity of 515 beds, encompassing a comprehensive medical system that includes acute care, outpatient services, and inpatient care. In response to regional medical demand growth and population aging trends, it continuously upgrades medical facilities and invests in capital improvements. According to the SASB healthcare service industry indicators (HC-DY-000.A / HC-DY-000.B), the hospital demonstrates stable growth and high utilization in terms of the number of facilities, bed capacity, and service capabilities. By 2025, the hospital will operate a total of four facility locations, including the main hospital and branch medical units, forming a tiered medical service system that effectively enhances the efficiency of medical resource distribution and regional service capacity.

Regarding service capacity and operational performance

The hospital consistently provides stable, high-quality medical services to both military personnel and civilians. It monitors various key performance indicators (KPIs) through a systematic data management system, which serves as the foundation for evaluating medical quality and operational efficiency. The hospital operates four medical service locations: Taichung Armed Forces General Hospital and its Zhongqing Branch, Chenggongling Clinic, and the Chenggongling Medical Office affiliated with the Ministry of the Interior’s Conscription Agency (responsible for the medical service contract for alternative service personnel). Together, these facilities form a comprehensive regional medical service network, enhancing medical accessibility and service coverage.

Regarding bed utilization and medical service capacity

In 2025, inpatient days reached 98,975, and outpatient visits totaled 398,401, indicating that the hospital continues to play a vital role as a primary and acute care medical service provider within the regional healthcare system. This service capacity not only reflects stable growth in medical demand but also demonstrates the hospital’s effective execution of medical resource allocation and operational management.

Observing trends over the years, the hospital’s primary medical service indicators demonstrate steady growth. Outpatient visits increased from 377,652 in 2023 to 392,798 in 2024, and further to 398,401 in 2025, indicating a continuously rising external demand for medical services and reflecting the hospital’s consistent appeal in outpatient service quality and medical accessibility. Regarding emergency services, emergency visits numbered 27,137 in 2023, decreased slightly to 26,611 in 2024, and further to 26,362 in 2025, demonstrating the hospital’s strengthened key role in the acute and critical care medical service system and its stable capacity to respond to urgent medical needs.

Regarding inpatient services

Inpatient days also show a steady growth trend, increasing from 97,873 in 2023 to 100,727 in 2024, before slightly decreasing to 98,975 in 2025. This reflects a stable demand for patient hospitalization and indicates that the hospital maintains consistent performance in inpatient care quality and efficient allocation of medical resources, supported by reliable professional medical capabilities.

The hospital’s service item statistics for the years 2023 to 2025 are as follows:

Service Items	2023	2024	2025
Outpatient visits	377,652	392,798	398,401
Emergency visits	27,137	26,611	26,362
Number of hospital admissions	9,862	9,753	9,674
Number of inpatient days	97,873	100,727	98,975

In recent years, our hospital has invested NT$2,420.21 million in constructing a new medical facility—the Acute and Critical Care Building—to enhance acute and critical care capacity, improve medical response capabilities, and optimize overall care quality. This significant capital investment not only reflects our hospital’s proactive planning for future shifts in medical demand but also demonstrates a long-term commitment to public healthcare infrastructure. Previously, the hospital maintained a stable inpatient capacity with a total of 460 beds, comprising 244 acute general beds, 116 acute psychiatric beds, and 100 special beds. Upon completion of the Acute and Critical Care Building, the total bed count is expected to increase to 515, including 292 acute general beds, 116 acute psychiatric beds, and 107 special beds, thereby supporting a balanced development of acute and chronic care services.

The hospital’s bed statistics for 2025 are as follows:

Type of hospital bed	Quantity (beds)
Acute General Beds	244
Acute Psychiatric Beds	116
Special Beds	100
Total:	460

Note: The hospital’s Acute and Critical Care Building underwent an operational inspection by the Health Bureau on December 29, 2025, and received approval in January 2026, as confirmed by official correspondence.

Regarding Financial Sustainability

Through continuous improvement of management mechanisms and enhanced resource utilization efficiency, the hospital’s operating revenue increased from 1.783 billion NTD in 2024 to 1.872 billion NTD in 2025, representing a 4.99% growth compared to the previous year. This growth demonstrates that the hospital has maintained stable operations and strong financial performance despite challenges such as the National Health Insurance global budget system, market competition, and changes in the medical environment. By adopting a management strategy that balances financial performance with medical service quality, the hospital effectively supports increased medical capacity, equipment investment, and improvements in care quality, while continuously strengthening organizational financial resilience and risk tolerance. Moving forward, the hospital will continue to implement sustainable financial management to ensure effective resource utilization and support its long-term development goals and the realization of sustainable values.

2025 Operational Performance Report of Taichung Armed Forces General Hospital

Item/Year	2023	2024	2025
Operating Revenue	1,713,616	1,783,745	1,872,844
Operating Costs and Expenses	1,690,397	1,758,046	1,843,831
Operating Surplus	23,219	25,699	29,013
Non-operating Income	18,942	24,883	27,153
Non-operating Expenses	12,717	12,843	13,160
Non-operating Surplus	6,225	12,040	13,993
Current Period Surplus	29,444	37,739	43,006
Employee Salaries and Benefits	737,559	765,075	785,604
Taxes and Levies	2,726	2,890	3,261

Note: 1. The units in this table are expressed in thousands of New Taiwan Dollars. 2. Salaries and benefits include performance bonuses, year-end bonuses, labor and health insurance fees, retirement funds, and leave bonuses. 3. Taxes refer to consumption and behavioral taxes, including business tax, income tax, and license plate tax.

Overall.

Our hospital’s financial management system has gradually developed a governance framework centered on “institutionalized budget management,” “transparent information disclosure,” and “performance-oriented operational management.” By continuously optimizing resource allocation and service efficiency, it enhances overall operational quality and financial stability. Within the framework of sustainable development, this financial governance model also aligns with the United Nations Sustainable Development Goals (SDG 3: Good Health and Well-being and SDG 16: Peace, Justice, and Strong Institutions), demonstrating the governance achievements of a public medical institution that balances social responsibility with financial sustainability.

In the future, our hospital will continue to enhance its financial data analysis capabilities and forecasting management systems by introducing more sophisticated cost analysis and resource utilization efficiency evaluation tools. These improvements aim to elevate the quality of financial decision-making. Simultaneously, we will advance benefit tracking and performance evaluation for major investment projects to ensure that investments in medical infrastructure effectively address demographic shifts and increasing medical demand. This approach will further strengthen the sustainable development capacity and long-term competitive resilience of the overall healthcare system.