M N M Jain Engineering College, Chennai

OBM752- Hospital Management

Unit 1- Overview of Hospital Administration

Dr.N.Saravanan, Professor, Computer Science & Engg.

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 UNIT I OVERVIEW OF HOSPITAL
ADMINISTRATION

 Distinction between Hospital and Industry, Challenges

in Hospital Administration – Hospital Planning-
Equipment Planning – Functional Planning.

 Text Books:
1. R.C.Goyal, Hospital Administration and Human
Resource Management, PHI – Fourth Edition, 2006.
2. G.D.Kunders, Hospitals – Facilities Planning and
Management – TMH, New Delhi – Fifth Reprint
2007.

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 About
Health is an important factor in the formation of human
resources development which will play a vital role in
improving the qualities of human beings, who are the active
agents of economic development.

So any measure of development achievement in a nation must

affect the state of personal wealth in the nation.

Better wealth would contribute to improving the economic

status of the poor and for expanding total output.
This demands sound management of a hospital.

Therefore in this chapter the researcher has made an attempt to

discuss about the meaning of hospital and fundamentals of
hospital administration and management .

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 Meaning of a hospital
Meaning of a hospital According to the World
Health organization, Health is a “State of complete
physical, mental and social well being and not
merely the absence of disease.

One of the fundamental rights of every human

being without distinction of race, religion, political
belief, etc. is the enjoyment of the highest
attainable standard of health.

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Factors Responsible for
Development of Hospitals
– Advances in Medical Sciences
– Development of Technological
Sophistication and Specialization
– Development of Professional Nursing
– Advances in Medical Education
– Contribution by Industrialist
– Support by Health Insurance
– Role of Government

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Special Features of the Hospital
 The motto of the hospital is ‘service’ which
cannot be quantified in any economic terms,
and no objective criteria can be laid down to
evaluate the standard of service.
 The service in the hospital is always
personalized.
 Medical services are rendered by the doctors,
nurses and other specialized personnel
according to the needs and requirements of
each individual.

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 Hospital service is normally emergent in nature and no
two situations are similar, which needs the same
treatment.
 The wide spectrum of people involved in the hospital
activity ranges from highly skilled professional to a
person who may not have visited school at all.
 The dual control through means of professional authority
in the hospital variably leads to management conflict,
which is a peculiar situation every hospital administrator
has to face in the day to day operation.

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 A hospital has to be highly responsive to the
health needs and service expectation of the
community.
 The work in a hospital tends to be both variable
and uneven.
 There is great concern for clarity and
responsibility. The cost of committing a
mistake in patient’s care is treated with serious
life and legal consequences

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 Meaning of management
According to McFarland,
• “Management is a distinct process consisting of
activates of planning, organizing, staffing, directing
and controlling, performed to determine and
accomplish stated objectives with the use of
human beings and other resources.

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 Meaning of Hospital
management
Hospital Management is a term very broad in scope
and may be defined from different aspects. It
mainly relates to management of all aspects of a
hospital; a coordination of all elements of a
hospital. This may range from patient care to
record keeping to inventory of medicines and
cleanliness .

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 Distinction between Hospital &
Industry Organization
Function of Hospital
 To provide care for the sick and injured.
 Training of physicians, nurses and other
personnel.
 Prevention of Disease and promotion of health.
 Advancement of research in scientific medicine.

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 Distinction between Hospital &
Industry Organization
Function of Industry
 Seamless Flow of Work Production.
 Profit focus and economic growth.
 Understanding customers and making the
products they want available to them.

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 STRATEGIES TO MEET
CHALLENGES OF HOSPITAL
1. Technological advancement
2. Improve patient safety and cure
3. Hospital infection control practices
4. Restructuring of the management
5. Reorientation training
6. Marketing of hospital services
7. Leadership and motivation
8. Relation with outside companies
9. Career development programs
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 HOSPITAL PLANNING
 Dream or the idea born in mind
 Originator gather the support small groups
to larger community.
 Committee is formed(research, study,
survey, raising funds to meet expenses for
survey)
 Support of large organization if idea is
considerate.
 Successful hospital- good planning, good
design, good construction, good
administration
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 Design to meet the needs of people
 It must be staffed with competent and
adequate no. of doctors,nurses and other
professional.

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Guiding principles in hospital planning

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1. High quality and patient care:
Quality in healthcare means providing the care the
patient needs when the patient needs it, in an
affordable, safe, effective manner.
Quality healthcare also means engaging and
involving the patient, so the patient takes ownership
in preventive care and in the treatment of diagnosed
conditions.
2.EFFECTIVE COMMUNITY ORIENTATION:
Community-based health care is for people of all
ages who need health care assistance at home.
Community care services include home support,
nursing, physiotherapy and other rehabilitation
services. For example: A nurse visits an elderly
person at home to help with medication.
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3. ECONOMIC VIABILITY:
 Financial viability is nothing more than a
hospital's ability to generate and maintain an inflow
of finance resources (revenue) that is greater than
the outflow (expenses).
 When financial viability becomes a problem,
patient care could begin to suffer.
4. SOUND ARCHITECHTURAL PLAN:
 Hospital Architecture Design & Planning:
Promoting Patient Safety.
 When architects and medical facility
planners design spaces with infection control,
safety, and security protocols in mind, they can
reduce infection rates and promote patient
safeguards at every level.
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The success of Hospital Planning :
– Planning is the forecasting and organizing
the activities required to achieve the desired
goals.
– All successful hospitals, without exception
are built on a triad of good planning, good
design & construction and good
administration.
– To be successful, a hospital requires a great
deal of preliminary study and planning.
– It must be designed to serve people.
– It must be staffed with competent and
adequate number of efficient doctors,
nurses, and other professionals. 24
 – A strong management essential for the daily
functioning of a facility; must be included in the plans
of a new hospital.
– Hospital building differs from other building types in
the complex functional relationship that exist between
the various parts of the hospital.
– Apart from providing right environment for patients
and care providers, it should also be sensitive to the
needs of visitors.
 It is thus imperative to examine the emerging issues,
analyze the challenges, appreciate the emerging trends
and study the various strategic options available for
planning, designing and construction of a hospital

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 Classification of Hospitals
 There are different bases on which the hospitals
are classified as:
(a) Ownership (b) Therapy System
(c) Hospital Directory (d) Size
(e) Clinical Criteria (f) Level of Care
(g) Teaching Facilities (h) Accreditation
(i) Gender (j) Length of Stay.

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Equipping the hopsital percentage bifurcation

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Thank you !
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Questions and Discussion

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