THE BUDGET PREPARATION AND IMPLEMENTATION 2.docx

The budget is an instrument through which hospital administration, management at departmental levels, and the governing board can review the hospital's serDEFINITION:- 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.vices in relationship to a prepared plan in a comprehensive and integrated form expressed in financial terms.

1. THE BUDGET PREPARATION AND IMPLEMENTATION
INTRODUCTION :
Budget preparation and its implementation are one
of the important tasks of the pharmacy department of any hospital .it
requires several factors into consideration like planning and
stratergy for maintenance and development etc . the word budget
means the financial plan of a hospital for the period of a year . budget
is a quantity of plan of action and aid to the coordination and
implementation of plan
DEFINITION :
Budget is described as an instrument through which
hospital administration , management at the department levels and
governing bodies can review the hospital services in relationship to the
prepared plan in a compressive and integrated form expressed in
financial terms
OBJECTIVES :
1] Development of standards
2] comparision of actual results with standards
3] identification of deviation of fluctuation
4] analysis of deviation
5] the responsible person will use the budget details to
determine whether the proposal is economically feasible and realistic
6] to monitor the hospital financial activities
7] estimate the cost of completing objectives identified in
the proposal

2. ADVANTAGES OF PLANNING THE BUDGET : 1] Develop better
financial planning
2] gives a better focus on decision making to the management
3] effectively manage the financial aspects of the hospital
4] exposes the reasons of over expenditure
5] helps to focus on hospital priorities
6] 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 :
 Total income must be calculated for implementation of the budget
 Pharmacy department or accounts department maintance daily ,
weekly, monthlyand annual cost of the pharmaceutical issued to
the patient service
 The other statistics includes :
1] no of prescription
2] no of prescripition dispenced by each pharmacist
3] hours of work put in
4] prescription volume per hours of service

3. 5] medication cost per patient day
6] average drug cost per clinic visit
PREPARATION OF BUDGET :

Hospital administration prepares assumption , in statistical terms
About the kinds of services [ outputs] the hospital expects to
provide [ produce]


The hospital administrator prepare the economic forecaste in
respect of new developments , or other factors

The hospital administration to outline the budget goals and policies as
per the directives


The financial manager prepare a budget package and forward it to all
the department


Each department head to analyses financial and statistical data
generated by his department as well as provided to him by the finance
department


a budget hearing is organized by the finance officer at the departmental
level where the department head presents his or her draft budget

4. the finance officer developes the departments revenue budget ,
summarise departmental expense budget , and forward the departments
budget hearing summary to the concerned department head


the finance officer prepares a preliminary operating revenue budget for
the whole hospital , by summarising and collating the individual
departments budgets


the finance officer to summarise the total budget into a proper budget
format including stastical summarise


the budget is presented by the finance officer to the governing board of
trustees or to the finance committee for their approval
IMPLEMENTATION OF BUDGET :
It includes the following parameters
 Requirement of different departments
 Actual fund position
 Utility of particular item
 Cost of products
 Quantity of product
FACTORS AFFECTING BUDGET :

5.  Local condition and compulsion
 Management policy
 Confidence of higher authorities
 Ability of higher authorities

REFERENCE ;
 Programming , budgeting , and control in health care
organization : the state of the art by Robert A . vraciu
 S . balasubramanian , n. narayanan , a text book of clinical and
hospital pharmacy , 2 edition
 Dr. ramesh k.goyal dr.r.k.parikh , a text book of hospital
pharmacy , 12 edition





HOSPITAL PHARMACY
TOPIC : BUDGET PREPARATION AND IMPLEMENTATION
D.PRIYA CHANDANA
VIGNAN PHARMACY COLLEGE
VADLAMUDI