Financial Resource Management

Background:

Major components of financial resource management are co financing and co management. Co financing refers to health activity funding through contribution from state level, community level, local, national level, international level, nongovernmental organization level, multi organization level and bilateral levels. Co management refers to resource management strategy by government sectors. Nursing financial resource management comes under district hospital management committee. Main objective of financial resource management are

• Increase health service and administration efficiency
• Accessibility of health service administration is improved
• Quality of health service in specific for vulnerable groups is improved
• Reorganization of health system results in primary health care reorientation

Levels of financial resource management:

Operational unit are of three following levels

• Central level
• Intermediate level
• Peripheral level
  • Health service
    • District service
    • Integrated head office
• Health structure
  • District hospital
  • IHC
  • SDH
  • Private

Resource of revenue for hospital:

Major source of revenue for hospital are hospital recovery cost and state budget for the same.

• National and state resources
  • Government investment credits
  • State running credits
• Community resources
  • Service fee payment
  • Fund surpluses from drug and medication sales
  • Donations and complimentary from the community
• Other resources
  • Donations and complimentary from foreign community, nongovernmental organization and medical associations

Use of financial resource management:

• It helps in hospital budget planning
• Assess the budget
• Improves hospital performance
• Interpret internal audit reports
• Suggest corrective measures
• New health care facilities plan
• Revenue management of government hospitals
• Helps in external auditing
• Research studies are made feasible
• Better nursing management
• Frame guidelines for hospital management

Questions:

• What is financial resource management?
• What are strength, weakness, threat and opportunity provided by financial resource management?
• What are alternative means of health care financing advent?