A HANDBOOK OF MANAGEMENT OF FINANCIAL AND MATERIALS RESOURCES IN A HEALTHCARE SETTING: The public and Private Not-For-Profit Health Units intend to ... and authored by Innocent KARENGERA)

The public and Private Not-For-Profit (PNFP) Health Units intend to provide Health services to the population. Their intention is not to make profits. However, they incur costs during the production and provision of health services. They should, therefore, at least break even if they are to continue operating. The public and Private Not-For-Profit (PNFP) health facilities need to maintain their financial management like private for-profit health facilities. This does not mean that they should aim at profit-making. Instead public and Private Not-For-Profit (PNFP) health facilities should aim at least meeting operating costs. This is where this HANDBOOK “Management of Financial and Materials resources in a healthcare setting” comes in handy to assist Health Facility Managers in particular and health professionals in general to understand the implications of proper management of financial and material resources to the affordability and accessibility of healthcare services. The funds used in health facilities come from donors, Governments, health insurance companies (private and community-based), and out-of-pocket payments. Donors may withdraw at some point in time. Governments have other competing priorities. Health insurance is not operational in many countries. Out-of-pocket payment is not sustainable because many people have no monthly income. Some people do part-time casual labor. The majority of the people in developing countries are peasants who earn little money after a crop harvest once or twice a year. The crop harvest is prone to destruction by natural Hazards like prolonged drought and over-flooding. But healthcare is not only a need, it is also a right. There is a need for Understanding costs by creating cost awareness among health services managers, prescribers, other staff, clients, and the community as a whole. There is a need for behavior change for efficiency to happen. Calculating and analysis of financial ratios is important to both Private-For-Profit(PFP) and public and Private Not-For-Profit health facilities. Fees need to stay low so the patients can afford health service bills. Salaries need to be competitive to motivate staff. Surplus is needed to accumulate reserves for future investment. Surplus is collected over the years to have resources in case of unexpected losses and to make new investments. There is a need for taking/giving responsibility to the lower-level managers i.e. involving lower-level managers in Planning, identifying bad practices, and changing those practices. The handbook, “Management of Financial and Materials resources in a healthcare setting” Comprises seven Chapters: Chapter One: The Role of Finance in Health Services Management, Chapter Two: Investments, Chapter Three: Contingency Planning, Chapter Four: Cost Containment and Break-even analysis, Chapter Five: Budgeting, budgets, and external and internal auditing, Chapter Six: The Management of drugs and medical supplies, space and transport in Health Facilities, Chapter Seven: Management of Material resources other than drugs, space, and Transport. This Handbook is intended to be used by Health Managers, Health professionals, and students in Health Training Institutions.