Financial analysis

Analysis of financial reports used in hospital pharmacy management is described. Financial data may be reported as numbers, ratios, or graphs. Drug expenses should receive the most extensive analysis because they constitute the largest expense for a hospital pharmacy. Monthly and year-to-date expenses of various categories of drugs and supplies are discussed in relation to the influence of such factors as time of year, workload, and physician prescribing patterns. Personnel expenses are analyzed in a similar manner. An example of a written financial report to hospital administration that discusses expenses, revenues, and the effect of various factors on the financial status of the pharmacy department is presented. Analysis of financial data by the hospital pharmacy manager provides insight into other aspects of the department and information on which to base future management decisions.