Finance and Economics of Hospitals:

The most important factor in a start up business be it a Hospital or anything else is finance. One cannot go for the best in every case without looking after their budgets. But, in case of healthcare industry quality cannot be compromised in any form, hence spread to the limit where your bed sheet allows.

The finance is the most important department to be considered during the policy making of an organisation. During the policy making the whole process should crystal clear so that that during the process of internal/external audits things are easy to scrutinise.

The whole process involved in the purchase of any item is like:

1. Requisition
2. Tenders/Quotations
3. Approval
4. Purchase Order
5. Delivery
6. Bill checking
7. Invoice
8. Balance payment

The accounts purchase and stores department should have all the requisite papers available which can be asked to produce at the time any surprise audit.

The accounts shall also allot specific budget to each department for their purchase including maintainance. This should be verified and prior approvals should be taken at each step before every purchase.

The store is a very important factor in any form of organisation specially Hospitals to always have the availability of important items. Its further role is in the unified checking of the delivery of items.

Such systems usually creates transparency amongst all the departments and allows an ease in general working of the Hospital.  

To Be continued…..

By Mohammed Shadaab Shaikh
CEO & Founder
Healthcare Infrastructure India.