HOSPITAL FINANCE

PRESENTED BY:-Dr.sachi bajajDr.venus monga

Mr. Subodh Agrawal(Head of department)

Hierarchy Of Fortis Finance Department

Zonal finance controller

Manager of finance deptt

Deputy manager

Assistant manager

Executives and staff level-9

Mr. SUBODH AGRAWAL

Mr. MONTOO GARG

Ms.PARMINDER KAUR

Mr. PANKAJ TONDON AND Mr. VINOD KUMAR

What Does Finance Department Do??

Preparation of budget

Allocation of funds

Management of Investments of

Company

Management of Financial Risks

Control of expenditure

Administration of Taxes

Resource mobilisation

Financial concurrence and

adviceRevenue

enhancement

Evaluating individual hospital performance through followings

Cash in hand (days)

Accounts receivable (days)

Average payment period (days)

Inpatient gross revenue (percentage)

Outpatient gross revenue (percentage)

Evaluating individual hospital performance through followings contd…

Maintained bed occupancy (percentage)

Average length of stay (days)

Operating margin (percentage)

Personnel expense (percentage of operating revenue

Highlights Of The DepartmentCash flow statements prepared by finance deptt on

weekly basis. Profitability made on monthly basisYearly budgeting is done based on occupancy rate

and ALOS.Standard 85% should be occupancy rate. Finance department estimate the revenue.

generation by looking at occupancy rate and ALOS. To look at availability of manpower.

Contd’

• High Quantum of work + High pressure + High workload

Still We Meet Our Deadlines (99% efficiency)

SOURCES OF REVENUES

• IPD- Rs 18 crore per month.*• OPD- Rs 2 crore per month.*• Pharmacy- Rs 1 crore per month.*

FROM OPERATI

ONS• FORTIS INN• IDBI bank• CCD• Nescafe• Connection booster• Fortis city centre

FROM NON

OPERATIONS

Hospital Expenses: How Hospital Spend Money

Purchases

Salaries

Operation and capital

expenses

Outsource Department

Electricity

Maintenance

Transport

F & B

Finance Core Areas

DOCTOR SHARE

SALARIED DOCTOR

EMPANELLED

CONFIDENTIAL

SALARIED CELL

RECIEVABLE

ECHS TPA’s CGHS

Finance Core Areas

OPEX

OPERATING EXPENSES 2011( in lacs) 2010(in lacs)Material consumed 10802 9081Employee cost 7756 6232Legal & professional fee 347 763Professional charge to doctors

4934 4047

Other expenditure 12456 8135

An operating expense, operating expenditure, operational expense, operational expenditure or OPEX is an ongoing cost for running a system.

CAPEX

CAPITAL EXPENDITURE 2011(in lacs) 2010(lacs)Fixed assets 191020 166492Goodwill on consolidation 43986 41638Goodwill on acquisition 44448 44624Interest 2271 3225

Capital expenditure (CAPEX), is the cost of developing or providing non-consumable parts for the system.

Purchases

Two ways of spending:-

Purchase Order.

Consignment

Modes of Payments

Cash Demand Draft

TAXES PAID BY FORTIS

TAX

Fortis inn and cosmetics

Pharmaceuticals and food & beverages

Public shareholding

• In 2010-Rs. 74,674,964 lacs• In 2011-Rs. 74,949,526 lacs

• Percentage of shareholding– 18.5% for 2010– 23.5% for 2011

System use for accounting and finance

PRODIGIOUS

MEDTREK

Trial balance

P & L

Gross margin

Balance sheet

BED OCCUPANCY

AVERAGE LENGTH OF STAY

AVERAGE REVENUE PER OCCUPIED BED

BUSINESS RUNS

70% on cash

30% on credit

Debtor collection period is 180 days

SUGGESTIONS

References

• www.fortishealthcare.com/mohali• www.forbes.com• Mr Pankaj Tandon- Assistant Manager Of

Fortis Mohali.

THANK YOU