The Pros And Cons Of Public Hospitals

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Public hospitals are an important part of health systems in developing countries, and depending on their capacity, act as first referral, secondary or last referral facilities. These hospitals are generally responsible for 50 to 80 percent of recurrent government health sector expenditure in most developing countries (Barnum & Kutzin, 1993), and utilize nearly half of the total national health expenditure in many of these countries (Mills, 1990). Under the prevailing conditions of increasing health care costs, it is thus no surprise that “hospitals, as the main spenders within the healthcare system, are in the limelight” (Montoya-Aguilar, 1994). In today’s highly complicated, technological and competitive health care arena, the public outcry is for administrators, medical staff, and other health care professionals to provide high quality services at lower cost (Kumar, 2012). A hospital provides wide variety of healthcare services to individual…show more content…
However, the inability to recognize the problem concerned and fixing a boundary off investigation creates an obstacle for the successful implementation of budgeting and control. Some organizations only look for narrow ranges of alternatives which they arrive at from their past expenses and present situation, other management levels even avoid long-term planning and budgeting in favour of today’s problems thereby making the problems of tomorrow more severe (Steward, 1993). The foregoing reflects on the need for organizations to set up a formal mechanism for scanning their environment for opportunities and give early signs of future problems, this course of action will improve the system of budgeting and control, resulting in a priori expectation of improved decision making, in the health
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