Budget- Its preparation and implementation
- 1. The budget Its preparationandimplementation DR. SUBHASH R. YENDE ASST PROFESSOR, GURUNANAK COLLEGE OF PHARMACY, NAGPUR DR. SUBHASH R. YENDE, GNCP NAGPUR 1 PHARMACY PRACTICE
- 2. Budget Financial interpretation prior to a defined period of time, of a policy to be pursued for that period to attain given objective It is an instrument through which hospital administration, management at departmental levels, and the governing board can review the hospital’s services in relationship to a prepared plan in a comprehensive and integrated form expressed in financial terms Prepare annually or 3-5 year duration DR. SUBHASH R. YENDE, GNCP NAGPUR 2
- 3. Budget should have following objectives: Development of standards of performance Comparison of actual results with these standards Identification and of deviation or fluctuation from these standards Subsequent analysis of deviations to determine whether they are controllable or uncontrollable To monitor the hospital financial activities. Estimate the cost of completing objectives identified in the proposal DR. SUBHASH R. YENDE, GNCP NAGPUR 3
- 4. Advantages of Preparation of 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 DR. SUBHASH R. YENDE, GNCP NAGPUR 4
- 5. Divisions of Budget 1. Income or Revenue Accounts 2. Expenditure Accounts 3. Capital Equipment and construction DR. SUBHASH R. YENDE, GNCP NAGPUR 5
- 6. 1. Income or Revenue Accounts Total income is calculated from • Daily, weekly, monthly & annual cost of the pharmaceuticals issued to the patient services • Processing of prescription and requisition The other statistics includes: • No of prescriptions received • No of prescriptions dispensed by each pharmacist • Number of working hour • Medication cost per patient day • Average drug cost per clinic visit DR. SUBHASH R. YENDE, GNCP NAGPUR 6
- 7. Income in hospital pharmacy is limited to the sale of drugs to inpatients, ambulatory patients and departments of the hospital The sale of drugs to patients may be subdivided further based up on patient’s ability to pay or to their employment status a. Full payment b. Part payment c. Non-payers d. Physician (not paying) e. General employee DR. SUBHASH R. YENDE, GNCP NAGPUR 7
- 8. 2. Expenditure Accounts Expenses can be divided as- oAdministration and general expenses oExpenses for Professional care of patients oExpenses for Out-patient and emergency oMiscellaneous expenses Pharmacy department come under category of professional care of the patient Expenditure account of pharmacy department contains- Salaries and Wages Includes (i) Pharmacists, (ii) Assistants, (iii) Clerks and (iv) Others • Administrative, professional and non-professional staff. • Full time and part time staff • New post and overtime DR. SUBHASH R. YENDE, GNCP NAGPUR 8
- 9. Supplies and Expenses Drugs and pharmaceuticals • Dispensed by prescriptions, hospital pharmacy department, out patient, emergency and other departments Purchase services ◦ Include the cost of prescription (excluding those intended for out patient) purchased from out side pharmacy in case the hospital does not have its own Pharmacy Miscellaneous ◦ Bottles, labels, glasswares, stationary, pharmacist uniforms, reference books DR. SUBHASH R. YENDE, GNCP NAGPUR 9
- 10. 3. Equipment and Construction Budget DR. SUBHASH R. YENDE, GNCP NAGPUR 10
- 11. Implementation of budget Implementation is an act of carrying out the plans, program and projects in accordance with strategic plans in order to attain goals and objectives. It includes the following parameters 1. Requirement of different departments 2. Actual fund position 3. Utility of particular item 4. Cost of products 5. Quantity of product DR. SUBHASH R. YENDE, GNCP NAGPUR 11
- 12. Reference RK Goyal & RK Parikh. Text book of Hospital Pharmacy, B S Shah Prakashan Ahmedabad. AB Budhrani, R. Usman, M Sharma, P Kumar. Concise Course in Pharmacy Practice. S. Vikas and Company. https://www.slideshare.net/rameshganpisetti/14ab1t0018- budget-preparation-and-implementation DR. SUBHASH R. YENDE, GNCP NAGPUR 12