The document discusses the budget preparation and implementation process for a hospital pharmacy. It defines a budget as a financial plan for a defined period to achieve objectives. The budget is prepared annually or every 3-5 years and includes income/revenue accounts, expenditure accounts, and capital budgets. Income comes from drug sales to inpatients, outpatients, and departments. Expenditure includes salaries, supplies, drug purchases, equipment, and facilities. Proper implementation of the budget requires assessing department needs, available funds, item utility, costs, and quantities. The budget allows for financial planning, decision-making, efficiency monitoring, and priority-setting for the hospital pharmacy.

1. The budget
Its preparationandimplementation
DR. SUBHASH R. YENDE
ASST PROFESSOR,
GURUNANAK COLLEGE OF PHARMACY,
NAGPUR
DR. SUBHASH R. YENDE, GNCP NAGPUR 1
PHARMACY PRACTICE

2. Budget
Financial interpretation prior to a defined period of time, of a policy
to be pursued for that period to attain given objective
It is an instrument through which hospital administration,
management at departmental levels, and the governing board can
review the hospital’s services in relationship to a prepared plan in a
comprehensive and integrated form expressed in financial terms
Prepare annually or 3-5 year duration
DR. SUBHASH R. YENDE, GNCP NAGPUR 2

3. Budget should have following objectives:
Development of standards of performance
Comparison of actual results with these standards
Identification and of deviation or fluctuation from these standards
Subsequent analysis of deviations to determine whether they are
controllable or uncontrollable
To monitor the hospital financial activities.
Estimate the cost of completing objectives identified in the
proposal
DR. SUBHASH R. YENDE, GNCP NAGPUR 3

4. Advantages of Preparation of the Budget:
Develop better financial planning.
Gives a better focus on decision making to the management.
Effectively manage the financial aspects of the hospital.
Exposes the reasons of over expenditure.
Helps to focus on hospital priorities
Enhance efficiency of staffs and others
DR. SUBHASH R. YENDE, GNCP NAGPUR 4

5. Divisions of Budget
1. Income or Revenue Accounts
2. Expenditure Accounts
3. Capital Equipment and construction
DR. SUBHASH R. YENDE, GNCP NAGPUR 5

6. 1. Income or Revenue Accounts
Total income is calculated from
• Daily, weekly, monthly & annual cost of the pharmaceuticals
issued to the patient services
• Processing of prescription and requisition
The other statistics includes:
• No of prescriptions received
• No of prescriptions dispensed by each pharmacist
• Number of working hour
• Medication cost per patient day
• Average drug cost per clinic visit
DR. SUBHASH R. YENDE, GNCP NAGPUR 6

7. Income in hospital pharmacy is limited to the sale of drugs to
inpatients, ambulatory patients and departments of the hospital
The sale of drugs to patients may be subdivided further based up
on patient’s ability to pay or to their employment status
a. Full payment
b. Part payment
c. Non-payers
d. Physician (not paying)
e. General employee
DR. SUBHASH R. YENDE, GNCP NAGPUR 7

8. 2. Expenditure Accounts
Expenses can be divided as-
oAdministration and general expenses
oExpenses for Professional care of patients
oExpenses for Out-patient and emergency
oMiscellaneous expenses
Pharmacy department come under category of professional care of
the patient
Expenditure account of pharmacy department contains-
 Salaries and Wages
Includes (i) Pharmacists, (ii) Assistants, (iii) Clerks and (iv) Others
• Administrative, professional and non-professional staff.
• Full time and part time staff
• New post and overtime
DR. SUBHASH R. YENDE, GNCP NAGPUR 8

9. Supplies and Expenses
Drugs and pharmaceuticals
• Dispensed by prescriptions, hospital pharmacy department, out patient,
emergency and other departments
Purchase services
◦ Include the cost of prescription (excluding those intended for out
patient) purchased from out side pharmacy in case the hospital does not
have its own Pharmacy
Miscellaneous
◦ Bottles, labels, glasswares, stationary, pharmacist uniforms, reference
books
DR. SUBHASH R. YENDE, GNCP NAGPUR 9

10. 3. Equipment and Construction Budget
DR. SUBHASH R. YENDE, GNCP NAGPUR 10

11. Implementation of budget
Implementation is an act of carrying out the plans, program and
projects in accordance with strategic plans in order to attain goals
and objectives.
It includes the following parameters
1. Requirement of different departments
2. Actual fund position
3. Utility of particular item
4. Cost of products
5. Quantity of product
DR. SUBHASH R. YENDE, GNCP NAGPUR 11

12. Reference
RK Goyal & RK Parikh. Text book of Hospital Pharmacy, B S
Shah Prakashan Ahmedabad.
AB Budhrani, R. Usman, M Sharma, P Kumar. Concise Course in
Pharmacy Practice. S. Vikas and Company.
https://www.slideshare.net/rameshganpisetti/14ab1t0018-
budget-preparation-and-implementation
DR. SUBHASH R. YENDE, GNCP NAGPUR 12