Financial management of hospital pharmacies

This paper launches a 12-part series of articles on financial management of hospital pharmacies. This series is designed to help hospital pharmacists develop expertise in financial management so that they can keep pace with changing reimbursement structures and shrinking departmental budgets. The objectives, responsibilities, and capabilities of the hospital financial department will be reviewed, and the need for pharmacy directors to develop departmental financial management systems will be stressed. Methods of collecting financial information and preparing financial reports will be reviewed, as well as how those reports can be used in managing the pharmacy. Budgeting techniques will be demonstrated, methods for analyzing expenses and revenues will be illustrated, and possible cost-containment activities will be identified. Methods used by hospital administration to control costs of all departments will be reviewed.