FINANCIAL MANAGEMENT IN HEALTH CARE ORGANIZATIONS: A CASE STUDY OF MATER MISERICORDIAE HOSPITAL, AFIKPO
FINANCIAL MANAGEMENT IN HEALTH CARE ORGANIZATIONS: A CASE STUDY OF MATER MISERICORDIAE HOSPITAL, AFIKPO
No Thumbnail Available
Date
1988-09
Authors
SALIHU, WORU RAMATU
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
ABSTRACT
Financial Management in Health Care Organization, A case study of Mater
Misericordiae hospital was carried out to assess how the hospital manages her
funds/resources.
Financial Management involves acquiring and utilizing funds. Cash is
gotten from different sources, its used to purchase inventory, the inventory when
sold results in cash or accounts receivables [credit sales] when collected cash is
made available for recycling. However if there is a problem along the flow other
areas are affected also.
In this study, the various sources of funds that can be utilized by a firm was
review. Planning for this financing is also needed and budgeting, as a tool for
financial planning was discussed. The various components of current assets and
current liabilities was studied in the light of accepted techniques and models for
managing them. This was used to assess how the hospital manages her own
components.
The research method used here is the description and the case study
method. Data was collected through interview, observation and from text books
and journals.
It was discovered that the hospital has a weak cash position as a result of
the limited sources of funds and the management of her current asset with
accounts receivable being very high, this in turn affected her current liabilities.
Also the hospital does not use most of the management techniques rather she
depends more on intuition and past experience in managing her working capital.
Also the amount expended an drugs is usually a significant portion of the hospital
recurrent expenditure. Thus the mismanagement of drugs could easily result in
great loss. Carrying too high inventory means a lot of capital is being tied down.
So the problem is finding a suitable balance between the cost of carrying a large
inventory and the ordering cost, determining optimal quantities of safety stocks so
as to balance the cost of stockout with that of carrying the safety stock.
Another area was the investment of funds in fixed asset or marketable securities,
the major decision here is what to invest in and when considering the economic
recession and the expected revenue from the investment.
In conclusion, recommendations were made with a call on the government
to consider the voluntary missionary hospital in the budget allocation. The
recommendation if put in place would help the hospital manage her resources
effectively.
Description
MBA\ADMIN/13064/97-98
A PROJECT SUBMITTED TO THE POSTGRADUATE
SCHOOL, AHMADU BELLO UNIVERSITY, ZARIA
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF THE DEGREE OF MASTERS
IN BUSINESS ADMINISTRATION [MBA]
SEPTEMBER,
Keywords
FINANCIAL,, MANAGEMENT,, HEALTH CARE,, ORGANIZATIONS,, CASE STUDY,, MATER,, MISERICORDIAE,, HOSPITAL,, AFIKPO.