Presentation By :- G.







FUNCTIONS : 1) The responsible person will use the budget details to determine whether the proposal is economically feasible and realistic. 2)Comparison of the actual results with the standards for identifying deviations. 3) Subsequent analysis of deviations to determine whether they are controllable or uncontrollable. .DEFINITION: Financial or a quantitative statement prepared for the purpose of attaining a given objective. 2) Budget provides a means to monitor the hospital financial activities. implemented GOALS : 1)For the development of standard of performance. It is more than a forecast of income and expenditure that reflects the policy being implemented. 3) The main function is to estimate the cost of completing the objectives identified in the proposal.

. 3. 3)True income of the department is the some of the pharmaceuticals issued to the patient based on their prescriptions and to the other departments.long-term budget (5 . 2) Department of the pharmacy or the accounting department maintains daily. 2.Types of budget preparation: . Expense accounts. Income or revenue accounts. Capital and equipment budget. .Short term budget ( 2 years).monthly & annual cost of the pharmaceuticals issued to different patient services & to the special service departments.10 years). Divisions of budget: 1. weekly . Income or revenue accounts: 1) Total income must be calculated for the proper implementation of the budget.

Total expenditure in hospital depends upon 3) Administrative and general expenses. EXPENDITURE ACCOUNTS: 1) Professional care of patients. The expenditure accounts consists of following categories a) Expense accounts for salaries and wages b) Expenses of supplies and materials c) Purchase expenses d) Drugs and pharmaceuticals e) Expenditure on over time positions . 2) Out patient expenses . c) Prescription volume per hour. 4) Emergency and miscellaneous expenses.4) The other statistics that are valued to accurately predict the activity of department of pharmacy are a) Total number of prescriptions . e) Average salary cost per prescription. b) Total hours of service. d) Per day average supply cost of medication.

.EXPENSE ACCOUNTS FOR SALARIES & WAGES: Total expenditure=administrative + professional + non professional staff Total expenditure= administrative + professional+ non professional EXPENSES OF SUPPLIES AND MATERIALS: 1) The responsible person or the chief pharmacist should prepare a financial statement considering the requirement of amount in rupees for supplies and materials with the help of latest available financial statement. 2) It is also necessary to show the actual cost of the materials and supplies. 3) If the budgeted figure and the estimated actual figure are same then the previously prepared budget was estimated to be well done.

‡ Some drugs used by out patients &emergency department should be charged separately but not in this account. DRUGS AND PHARMACEUTICALS : ‡ Many drugs are dispensed by prescription in the hospital pharmacy departments. 2) It is necessary that the actual cash for replacement or remodeling of equipment should be budgeted. . then the construction of purchase of equipment creates a major problem. EQUIPMENT AND CONSTRUCTION BUDGET : 1) Budget for immediate arrangement of a new model equipment is also required. 3) If proper budget in hospitals is not a policy.PURCHASE EXPENSES:  The budget of purchase expenses should include the cost of prescriptions purchased from outside pharmacy.

IMPLEMENTATION OF A BUDGET: Implementation of a budget is a difficult task and involves following parameters. a) Requirement of different departments b) Actual fund position c) Utility of particular item d) Cost of products e) Quantity of products ADVANTAGES OF PLANNING THE BUDGET: 1) Can develop better financial planning 2) Gives a clear focus on decision making to the management 3) Can effectively manage the finance of the hospital 4) Exposes reasons for over expenditure 5) Helps to focus on hospital priorities 6) Enhance efficiency of staff and others .

INVENTORY CLASSIFICATION: 1) Raw inventories: include raw materials and semi finished goods. ‡ Helps to provide right type of material at right time in right quantities. 3) Finished inventories : finished goods in stock rooms. repair & maintenance during manufacturing cycle OBJECTIVES OF INVENTORY CONTROL: ‡ The main purpose of having an inventory control is d) To avoid shortage of stock. c) To reduce or minimize investment . e) To avoid wastage of stock.INVENTORY CONTROL AND BUDGET PLANNING DEFINITION ‡ A scientific method of finding out how much stock should be maintained in order to meet the production demand. 4)Indirect inventories : includes lubricants and other items for proper operation. b) To give maximum customer service. 2) In process inventories : semi finished goods at various stages of manufacturing cycle. a) To supply the drug in time.

TECHNIQUES OF INVENTORY CONTROL ABC analysis Economic Order Quantity (EOQ) VED analysis Perpetual inventory system Review of slow and non moving items Setting of various levels Buffering stock Modern computerization of inventory control ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ .

I N V E N TO RY C O N T RO L M E T H O D S ABC( Always Better Control ) HML(High Medium Low) VED(Vital Essential Desirable) FSN(Fastmoving Slow moving Nonmoving) GOLF(Government Ordinary Local Forigen) SOS(Seasonal Off Seasonal) .

3) Helps in maintaining safety of total stock. 4) Easy to maintain stock and turn over rate. 2) Easy to control the wastage of costly items. A=ALWAYS B=BETTER C=CONTROL A-CLASS B-CLASS Intermediate Class (20-25%) Costly of about 20% budget C-CLASS Cheaper Class (60-70%) 5-10% of total budget Costly items (10-15%) Costly of about 70-80% of total budget ADVANTAGES : 1) Investment in inventory can be maintained.INVENTORY CONTROL TECHNIQUES A B C A N A LY S I S : It is the very common tool in all drug stores where large inventory items are stocked. .

Formula: EOQ = A = Demand for the year . stock quantity. storage and receiving etc. Ch = Cost to hold one unit inventory for a year. *=× .INVENTORY CONTROL TECHNIQUES EOQ: 1) Easy technique to estimate how much of the inventory is to be Ordered. 2) Also useful for avoiding some expenditure which are not generally required. Cp = Cost to place a single order . 3) The ordering costs consists of stationary.

2) It is useful in controlling & maintaining the stock of various types of formulations of a particular group of drugs. V=VITAL (Anacin) E=ESSENTIAL (dispirin) D=DESIRABLE (micropyrine) 4)The categories may change based on the demand.INVENTORY CONTROL TECHNIQUES VED ANALYSIS : 1) This analysis is based on utility of material in the drug store . 3) Drugs are classified into the following categories . Ex: aspirin .

INVENTORY CONTROL TECHNIQUES PERPETUAL INVENTORY SYSTEM: 1) This is an ideal method for maintaining the records up to date. 2) For small pharmacies .INTERNATIONAL BUSINESS MACHINES (IBM). 4) Perpetual inventory system comprises of three parts. 3) For large pharmacies . a) Bin card b) store ledger c) continuous stock taking .PEG boards.

2) Store ledger consists of leaf cards for easy removal and insertion. 3) Selected number of items were collected everyday and matched with bin card and store ledger. 2) The items are selected based on their utility. . Continuous stock taking: 1) In this method limited items are verified. 3) Useful to maintain all costly items .S TO R E L E D G E R : 1) Very useful inventory control system.

Fashion habits c)reorder MAX LEVEL=RE-ORDER LEVEL + REORDER QUANTITY +MINIMUM CONSUMPTION MODERN COMPUTERISATION OF INVENTORY CONTROL: In all these days all purchasing and inventory control are made by computer application. 2) It consists of various levels a) Maximum b) minimum Level of stock is fixed by considering the following points: -Nature of material . NIC-NATIONAL INFORMATICS CENTRE has developed software for maintaining the inventory control records throughout the year.Storage space available -Market trend . Advantages 1) Very fast 2) Multiplies data in shortest period 3) Minimum investment 4) Min space BUFFER STOCK: ‡ Used to meet unexpected demands ‡ Helpful in emergency conditions .INVENTORY CONTROL TECHNIQUES SETTING OF VARIOUS LEVELS: 1)To maintain inventory control.

.  Preparation and implementation of budget both are important for proper Functioning of a hospital.CONCLUSION: BUDGET is an important tool in any hospital or organization. To increase the standards of a hospital & maintains small and big requirement in the hospital.  Inventory control is required for the proper maintenance of stock in the hospitals and helps to Supply drugs in right time in conditions of EMERGENCY.

1. http://www.HOSPITAL & CLINICAL moFBN/IS 4 7 ai 91155408 .P TIPNIS & Dr AMRITA BAJAJ.Pg N o:123-130.http://findarticles. 3.Dr. pg no:24.PRATIBA NAND & Dr.ROOP K.O. Birla Publications.TEXT BOOK OF HOSPITAL PHARMACY.wikipedia.Dr.htmml 8. 5.S QADRY.KHAR . 4. pg no:111-126. pg no: 64-82.PHARMACEUTICAL BUISNESS MANAGEMENT. http://en.H.budgetplanning. Career planning and inventory control 7. intro. Dr.J. 6. Dhanpat Rai Publications. pg no: 38-52.HOSPITAL PHARMACY. NK.1-24.JAIN & GUPTA -MODERN DISPENSING & HOSPITAL PHARMACY.P KHANNA.RAMESH.