HOSPITAL

BUDGET
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PREPARATION AND
IMPLEMENTATION
 DEFINITION

Instrument through which hospital administration,

management at the departmental level and the
governing board can review the hospitals
services in relationship to a prepared plan in a
comprehensive and integrated form expressed in
financial terms
 GOALS OF BUDGET
1. TO DIRECT CAPITAL EXPENDITURE IN MORE PROFITABLE
DIRECTION AND RESULTS IN MORE ECONOMIC USE OF
CAPITAL.
2. TO REDUCE WASTAGE AND LOSSES TO MINIMUM AND
ENSURE INCREASE IN PRODUCTIVITY AS REGARDS TO
HOSPITAL EQUIPMENTS AND MEDICINE.
3. TO PROVIDE DATA FOR PREPARING QUESTIONS AND FILING
TENDERS
4. GUIDE FOR MORE EFFICIENT WORKING OF THE HOSPITAL
 ADVANTAGES OF BUDGET
1.Development of standards of performance
2.Comparison of actual results with the
standards developed
3.Determine the deviation from the standards
4.Analysis of deviation to determine whether it is
controllable or not
 POLITICAL CONSIDERATIONS

1.Personal considerations
2.Institutional considerations
3.Demographic considerations
 Add Title
CLASSIFICATION OF BUDGET

INCOME ACCOUNTS

EQUIPMENT AND
CONSTRUCTION
EXPENDITURE ACCOUNTS BUDGET
 INCOME ACCOUNT

 In order to prepare budget income is calculated by

maintaining daily/weekly/monthly/annual records.
 Generally income in the hospital pharmacy is limited to the
sale of drugs to the in patients and out patients.
 It further depends on the category of patients

1. Those who give full payment

2. Those who give partial payment
3. Those who cannot pay at all
4. Employes of the hospital
 STEPS TO BE CONSIDERED TO PROVIDE
DETAILED STATISTICAL DATA

1) Number of prescriptions recieved according to the categories

mentioned above
2) Total number of prescription dispensed
3) Number of working hours
4) Medication cost per prescription
5) Medication cost per patient/day
6) Medication cost per clinic visit
7) Average drug cost per prescription

This helps to provide more accurate evaluation and statistics

 EXPENDITURE ACCOUNT

Fixed expenses are generally fixed at all the levels.

Sub Categories
1) Administration Expenses
2) Expenses For Professional Care
3) Expenses for Out-Patient
4) Emergency Expenses
5) Miscellanous Expenses
 EXPENSES CONSIDERED BY THE PHARMACY
DEPARTMENT TO PREPARE EXPENDITURE ACCOUNT

1) Salaries and wages

2) Supplies of materials
3) Drugs and pharmaceuticals
4) Purchase expenses
5) Miscellanous supplies
 SALARIES AND WAGES
 It includes complete break-up of all sallaries and wages paid to
permanant and temporary staff.
 Its prepared in tabular form to give and overall view at a glance
 The administrator/chief pharmacist divides the staff into three
categories
a) administrative staff
b) professional staff
c) non professional staff

 The total of all these expenses constitutes the anticipated salaries and
wages expenditure for next year.
 SUPPLIES AND MATERIALS
 The head of the department should prepare a financial statement
showing amount in rupees budgeted for each item presenting
actual cost of materials.
 It helps in preparation of estimate fpr the next financial year.
 If the budgeted figure and estimated figure match each other,
that means the previous budget was well prepared
 If the figures are found to be different it needs re-evaluation of
the previous budget as well as estimated budget
 If new materials are added then the chief pharmacist should
mention its cost and submit them for the next budget.
 DRUGS AND PHARMACEUTICALS

Preparations are classified as thos dispensed by hospital pharmacy or

those used in OPD emergency and other departments.The charges are
then submitted to the respective departments.

PURCHASE EXPENSES

The budget should include cost of purchases from outside pharmacy.

MISCELLANOUS SUPPLIES

Expenses like for glasswares,labels ,stationary, uniform,repair and

maintainance.
 EQUIPMENT AND CONSTRUCTION
BUDGET

 Machinery and equipments cost

 Maintenance/ replacing charge

 Professional equipments and

 Administrative equipments
 IMPLEMENTATION

 The usual budget proposals are usually

prepared annually but long term planing
can also be done for 3-5 years.
 It is also the responsibility of heads of all
the departments to ensure that the budge
plan is followed properly.
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Thank You