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NAGAR PANCHAYAT HOSPITAL

Submitted by: Debapriya Waddadar Roll no-27

CASE OVERVIEW
Panchayat owned Hospital Viewed to be as a cost centre Panchayat takes care of various facilities and civic adminstrations Apart from budgetary support, expenses were met by revenues from cost centres.

THE HOSPITAL
OBJECTIVES
To provide domiciliary medical support to the residents of the township To provide immunization services under the maternal and child health programme To undertake preventive programmes for checking outbursts of epidemics

Though being a cost centre, soon converted into profit centre. Sources of income:
Donations Increase in revenue collections Increased intake Recognition

ISSUES
Hospital used as a profit centre. All the inflows and cash generated went directly into the pool No additional staff to meet up the hospital requirements. Revenues not used for hospital improvements. CMO found difficult to negotiate for each activity.

Accounts managed by Panchayat; no separate division. Even though separate bank account was prepared, it was tough to identify the contribution made towards hospital. Panchayat did not want to handover the hospital to Zila Panchayat.

HOSPITAL- A SELF SUSTAINING UNIT


MBA students suggested a few measures:
Pharmacy division
Inventories for medicines Lower prices Sufficient margins

Maternity Unit
Concept of small family with tubectomy

Equipment Purchase
Grant from panchayat or state government Private donor

SOLUTIONS
CMO discouraged cash donations. Donation of medicines and medical equipments. Danger of diversions of donation received. Donations in form of paying additional staff or visiting doctors. Would appoint specialists using goodwill.

CHALLENGES
To channelize the surpluses into health related activities. To provide autonomy. Provide next level of services, more staff, infrastructure, and resources.

ALTERNATE MODELS OF AUTONOMY


To get some form of autonomy:
Some decisions to be decentralised and financial transactions seperated from Panchayat. Handing over the management of hospital to a separate trust where panchayat members could be trustees. 74th Constitutional Amendment could allow transfer of some of its assets and resources to a private body to operate autonomously.

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