Tiêu đề 5. THE BUDGET – PREPARATION AND IMPLEMENTATION.pdf ✅

PHARMD GURU Page 1 BUDGET: Budget is described as an instrument through which hospital administration, management at the department levels and the governing bodies can review the hospital services in relationship to the prepared plan in a comprehensive and integrated form expressed in financial terms. OBJECTIVES:  Development of standards.  Comparison of actual results with standards.  Identification of deviation or fluctuation.  Analysis of deviation.  The responsible person will use the budget details to determine whether the proposal is economically feasible and realistic.  To monitor the hospital financial activities.  Estimate the cost of completing objectives identified in the proposal. THE BUDGET – PREPARATION AND IMPLEMENTATION
PHARMD GURU Page 2 ADVANTAGES OF PLANNING THE BUDGET:  Develop better financial planning.  Gives a better focus on decision making to the management.  Effectively manage the financial aspects of the hospital.  Exposes the reasons of over expenditure.  Helps to focus on hospital priorities.  Enhance efficiency of staffs and others. TYPES OF BUDGET PREPARATION: Based on the duration of budget, it can be divided in to:  Short term budget (2 years).  Long term budget (5 - 10 years). DIVISION OF BUDGETS: 1. Income accounts or revenue accounts. 2. Expenditure accounts. 3. Asking for capital investments. INCOME ACCOUNTS OR REVENUE ACCOUNTS: 1. Total income must be calculated for the implementation of the budget. 2. Pharmacy department or accounts department maintains daily, weekly, monthly & annual cost of the pharmaceuticals issued to the patient services. 3. The other statistics includes:  No of prescriptions.  No of prescriptions dispensed by each pharmacist.  Hours of work put in.  Prescription volume per hour of service.
PHARMD GURU Page 3  Medication cost per patient day.  Average drug cost per clinic visit.  Average salary cost per prescription.  Average supply cost per requisition. EXPENDITURE ACCOUNTS: 1. Administrative and general expenses. 2. Professional care of the patients. 3. Out-patients and emergency expenses. 4. Miscellaneous expenses. The expenditure accounts includes the following categories  Salaries and wages.  Supplies and expenses.  Drugs and pharmaceutical expenses.  Purchase expense.  Miscellaneous supplies and expenses. SALARIES AND WAGES:  Permanent and Temporary posts.  Proposed new post.  Request for Staff (full time,part time).  overtime payment.  Filled position.  Vacant position. EXPENSES OF SUPPLIES & MATERIALS:  Chief pharmacist or the responsible person should prepare the financial statement regarding the requirement of amount in rupees for supplies and materials with the help of the latest financial budget. Salaries and wages will be given
PHARMD GURU Page 4  Necessary to show the actual cost of the materials.  If the budgeted figure and the previous figure was the same then the previously prepared budget was well prepared. DRUGS AND PHARMACEUTICALS:  Those dispensed by prescriptions. Those used in the outpatients and emergency departments. PURCHASE EXPENSE:  It includes the cost of prescriptions purchased from an outside pharmacy. EQUIPMENT AND CONSTRUCTION BUDGET:  Budget for immediate arrangements of a new model equipment.  Budget for remodeling and replacement of equipment.  Construction of building. ASKING FOR CAPITAL INVESTMENT:  Hospital capital investment is important for acquiring and maintaining technology and equipment needed to provide health care.  Reduction in capital investment by a hospital has negative implications for patient outcomes. Most hospitals rely on debt and internal cash flow to fund capital investment.  The great recession may have made it difficult for hospitals to borrow, thus reducing their capital investment.