Principles of Hospital Administration

1. PRINCIPLES OF HOSPITAL
ADMINISTRATION
Ankit Singh

2. LEARNING OBJECTIVES
To understand the meaning of Principle’s .
To be able to classify the principles of Hospital Administration
 To understand the principles applicable in hospital planning and construction phase
To understand the principles applicable in hospital’s operational phase

3. LEARNING OUTCOMES
At the end of this session you will be able to :
1. Explain the meaning of Principles
2. Classify the Principles of Hospital Administration
3. Describe the principles applicable in hospital planning and construction phase
4. Describe the principles applicable in hospital’s operational phase

4. CONTENTS
 Introduction
 Principles in Hospital Planning and Construction Phase
 Principles for Hospital’s Operational Phase
 Summary

5. INTRODUCTION
Principle is a fundamental fact specific to a particular discipline on which other truths can be
built upon.
 Theory uses principles to explain phenomena's.
 Principles of Hospital Administration can be classified into two types based on the phase of the
Hospital.
I. Principles in the Hospital Planning and Construction Phase
II. Principles in the Hospital’s Operational Phase

6. PRINCIPLES IN HOSPITAL PLANNING
AND CONSTRUCTION PHASE
In the planning stage the emphasis should be given to :
1. Principle of “Need Assessment” on the basis of Community Diagnosis.
2. Principle of “Feasibility Assessment”
3. Principle of “Optimal Site Selection” with “Optimal Size”
3. Principle of “Zoning” (Outermost Zone, Second Zone, Middle Zone, Inner Zone, Service Zone)
4. Principle of “Functional Relationships” on whose basis the department location is determined.
5. Principle of “Design Must Follow the Function of the Department”.
6. Principle of “Project Management” .

7. Outer Most Zone
• Out Patient Department
• Emergency Department
• Reception
Second Zone
• Diagnostic X Ray
• Laboratories
• Pharmacy
• Blood Bank
Middle Zone
• Operating Department
ICU
Delivery
Nursery
Inner Zone • Wards and Nursing Units
Service Zone
• Dietary Services
Laundry and Housekeeping Services
Stores
Engineering
Mortuary
HOSPITAL ZONES

8. HOSPITAL SYSTEM
Clinical
Services
OPD
IPD
Emergency
OT
Nursing
Services
Wards
Diagnostic and
Therapeutic
Services
Radiology
Laboratory
Blood Bank
Pharmacy
Utility Services
CSSD
Laundry
Dietary
MRD
PMR
Mortuary
Services
General
Administration
HRM
Materials
Management
Financial
Management
House
Keeping
Engineering
Public
Relations
Transport
Services

9. PRINCIPLES FOR HOSPITAL’S
OPERATIONAL PHASE
1. Human Resource Management Principles Applicable to Hospital Administration
o No clear cut line of authority and unity of command.
o Loose hierarchy in hospitals , traditional system of junior and senior
o Leadership style is a mixture of authoritative and democratic.
o High level of Authoritarianism and Professionalization .
oMajor Emphasis on Coordination because of Interdependency.
2. Healthcare Marketing Principles Applicable to Hospital Administration
o Service Mix optimization.
o Segmentation , Targeting and Positioning
o Marketing Research and Marketing Intelligence
o Strong Dependence on Relationship Management with both customers.
o Constant focus on Service Quality Improvement

10. 3.Materials Management Principles Applicable to Hospital Administration
oEnsuring Continuous supply of items
o Determination of MOL, Buffer Stock, ROL, and MxOL
oApplication of Appropriate Inventory Management Techniques
o Vendor relations and vendor development
4. Financial Management Principles Applicable to Hospital Administration
o Cost Benefit and Cost Effectiveness Analysis
o CVP analysis
oMaster Budget Preparation
oCost Containment
oPreparation of Financial Statements and Annual Reports
PRINCIPLES FOR HOSPITAL’S
OPERATIONAL PHASE

11. 5. Principles related to Legal Aspects ,Applicable to Hospital Administration
o Compliance with statutory laws of the land, awareness to the concepts such as Captain of the ship , Law of Torts,
o Ensuring Hospital functioning as Ethical Organization.
o Ensuring Compliance with Ethical Norms for various professional groups such as Code of Conduct for Medical
Professionals
o Compliance with important acts such as Consumer protection act 1986 , MTP Act 1972, HOTA 1994 and
PCPNDT 1994, and Bio Medical Waste Rules and Regulations 2016. in both letter and spirit.
6. Quality Management Principles Applicable to Hospital Administration
o Cost of quality is always lesser than cost of poor quality
oImpetus for quality should come from top management
o Focus on quality is a work culture, not only quality departments Job.
o Quality is a philosophy and discipline which requires constant upgradation of knowledge
o It’s a continuous process, where organizations should strive for National and International accreditations.
PRINCIPLES FOR HOSPITAL’S
OPERATIONAL PHASE

12. PRINCIPLES FOR HOSPITAL’S
OPERATIONAL PHASE
7. Principles related to Operations Management,Applicable to Hospital Administration
o Identification of core processes
o Productivity improvement
oProcess Innovation and Process Reengineering
o Developing Lean systems and defect free processes.

13. CONCLUSION
Hospitals are an integral part of society , whose prime responsibility is to satisfy healthcare needs of
the community in an effective and efficient manner, with a major focus on quality of care delivered
and quality of care outcomes.
The Principles of hospital administration gets updated from time to time depending on social and
environmental factors of the community getting served and the level of technology in use.
Principles of hospital administration are derived from many other disciplines and are a dynamic in
nature , it gets updated as the customer preferences and healthcare delivery models keep on changing.
The future of hospitals is at home whereby ultimately patients will be asking for healthcare delivery
at home and at that time other principles will also get added in this discipline.

14. Thank You