• How Are The Hospital's Revenues And Expenses Grouped For Planning And Control?


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Abi Ainscough Profile
Abi Ainscough answered
The way in which a hospital's revenues and expenses are grouped varies from country to country, region to region and even from hospital to hospital. The way in which revenues and expenses are grouped will also vary depending upon the type of hospital - for example, is the hospital investor-owned or government funded? Without knowing which hospital you are referring to, I'm afraid it's very difficult to answer this question, especially in regards to the "revenues" you referred to.

However, there are a number of ways that expenses of a hospital could be grouped:

  • Salaries and employee benefits

Of course, the staff of the hospital must be paid for the work they do. Hospitals are generally huge organizations with a staff of 200, 300 or even more. As a result, the cost of paying each staff member's wages will be incredibly high. In addition, members of staff such as surgeons or therapists have a highly-qualified job, for which they spent a great deal of time in education, and therefore their wages can be very high.

Moreover, hospitals often offer their staff members benefits such as discounted healthcare for themselves and their families. While this is a fantastic benefit for the staff at the hospital, and can help to create a good work ethic, it is also very expensive.

  • Supplies and stock

Supplies can cover anything from vaccinations and bandages to hi-tech brain surgery equipment and x-ray machines. Some supplies, usually the technological machinery, are very expensive, while other supplies are cheap when bought as single units, but hospitals must buy them in bulk, meaning the prices is much higher.

  • Interest

The cost of the hospital building alone is enough to make your eyes water - as a result, the owners of a hospital (regardless of who this may be) must take out a mortgage on the hospital. This will accrue interest over time, which can be expensive. In addition, expensive technology or machinery may require that the hospital take out a loan - this will also result in interest being paid.

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