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Financialmanagement 1

Financial management is the process of arranging funds for an organization to function effectively and includes activities like budgeting. It is important for healthcare organizations as they require significant funds for infrastructure, equipment, services, and more. Nurses need to play a role in financial management by having a basic understanding of budgets and finding ways to reduce costs while still providing quality patient care. A budget is a detailed financial plan that focuses on an organization's objectives and requirements and helps coordinate departments and evaluate performance.

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Sujatha J Jayabal
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5K views3 pages

Financialmanagement 1

Financial management is the process of arranging funds for an organization to function effectively and includes activities like budgeting. It is important for healthcare organizations as they require significant funds for infrastructure, equipment, services, and more. Nurses need to play a role in financial management by having a basic understanding of budgets and finding ways to reduce costs while still providing quality patient care. A budget is a detailed financial plan that focuses on an organization's objectives and requirements and helps coordinate departments and evaluate performance.

Uploaded by

Sujatha J Jayabal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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Financial management

DEFINITION

It is a set of administrative activities concerned


with arrangement of cash and credit for the
organization for enabling it to function as effectively
as possible

IMPORTANCE

Health care organizations need money and an


efficient financial management system for carrying
out client centered activities for which tremendous
expenditure is involved in:
 Building and maintaining the infra-structure
 Procuring drugs, supplies and equipment
 Under taking medical laboratory services,
radiographic services, diagnostic investigative
services with use of sophisticated equipment, &
invasive procedures, blood banking services,
dietary services, pharmacy services, laundry
services, centralized sterile supply services and
so on.
ROLE OF NURSE IN FINANCIAL
MANAGEMENT

1. Health care organization not considered as


income generating institution earlier, are
gradually showing a trend developing into a
profit making industry.
2. Nurses need to play their role in financial
management in these institutions adequately.
3. This apart, the hospital administrators have
become conscious about nurses’ role in
improving the cost-effectiveness of patient care.
4. A substantial portion in the hospital budget goes
towards nursing costs.
5. Nurses also need to have a basic knowledge
about budget and budgetary process so that, they
can participate in reducing costs in the hospitals
and also justify their budgetary allocations in the
interest of patient care services and improved
work environment.
BUDGET

DEFINITION:

It is a structured plan for managing income and


expenses.

It is a detailed plan of operations for some specified


future period followed by system of record which will
serve as a check upon the plan.

PRINCIPLES:

1. It should provide sound financial management by


focusing on requirement of the organization
2. It should focus on objectives & policy of
organization
3. It requires that programme activities planned in
advance.
4. It should include co-coordinating efforts of various
departments establishing a frame of reference for
managerial decisions and providing a criterion for
evaluation managerial performance.
5. It should prepared under the direction and
supervision of the administrator or financial officer
6. It should necessitate a review of the performance of
the previous year.

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