Budget is an instrument through which hospital administration, management at the departmental levels, and the governing board can review the hospital services in relation to a prepared plan in a comprehensive and integrated form expressed in financial terms

1. Budget
Unit: 4 (a)
Mr. Ravinandan A P
Asst. Prof. & Senior Clinical Pharmacist
Department of Pharmacy Practice
Sree Siddaganga College of Pharmacy
Collaboration with
Siddaganga Hospital & Research Centre, Tumkur, Karnataka

2. Presentation outlines……….
1. Introduction
2. Definition
3. Types of budget
4. Preparation and implementation

3. Introduction
•A budget is a quantitative plan for acquiring and
using resources over a specified period.
•A budget is a financial plan for a defined period, often
one year
•One of the most important task of pharmacy department
of a hospital is to prepare the annual budget.
•By taking in to the consideration of all income and
expenditure.
•Pharmacist play an important role in preparing hospital
budget.
•Pharmacist should not take lightly.

4. Definition
• Budget is an instrument through which hospital
administration, management at the
departmental levels, and the governing board
can review the hospital services in relationship to
a prepared plan in a comprehensive and
integrated form expressed in financial terms
{I AM DeLe Go}

5. Classification of Budget

6. Divisions of the Budget
1.Revenue Accounts
2.Expense Accounts
3.Capital equipment account
{BREC}

7. Revenue (Income)Accounts
•Commonly used method to determining the
income may be the maintenance of daily,
weekly, monthly or annual accounts to get
the total cost of the pharmaceuticals issued
to various patient services as well as to
special service departments.

8. Revenue (Income)Accounts
•Income generated by sales of medicines
•Income received through hospital services
like, lab, Radiology, Procedures of surgery
•Research Projects such as conducting clinical
trials
•Third party payments.(Third-party examples include
mediators, mortgage brokers, and employment agencies)
•Income received from donations.
•Income received from endowment investments

9. Related to Pharmacy department
•Number of prescriptions dispensed by each
pharmacist
•Hours of work
•Prescription volume per hour
•Medication cost per patient day
•Medication cost per clinic visit
Generally, income in the hospital pharmacy
department is limited to the sale of drugs to
inpatients and outpatients .

10. Expense Accounts
This account in general may be divided in
to the following categories:
1. Administration & General
2. Professional care of patients
3. Out patient and emergency patient
expenses
4. Miscellaneous expenses

11. Examples of accounts
• Salaries & Wages: Post name and nature of Job
*Pharmacist *Assistant * Clerks * others
-full time - part time -temporary
• Supplies & Expenses
• Drugs & Pharmaceuticals
• Purchased services
• Miscellaneous supplies and expenses:
Ex: Bottles, labels, glassware, stationary, Uniforms,
reference books etc.

12. Capital equipment account
•Physical plants and equipment’s
•Actual cost
•Replacement cost
•Repairing cost
•Service cost

13. Capital equipment account
Professional
equipment's:
balance
Refrigerators
Cabinets (metal &
wooden)
Water distillation stills
Tablets and granules
manufacturing equipment
Weighing machines
Autoclave
Work tables etc.
Administrative
equipment’s:
Book cases
Notice boards
Calculators
Computers
Cash registers
Clocks
Desks
Lockers
Work tables

14. Thank
You