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A COMPARATIVE STUDY OF EXPENDITURE CONTROL METHODS IN GOVERNMENT AND PRIVATELY OWNED HOSPITALS

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A COMPARATIVE STUDY OF EXPENDITURE CONTROL METHODS IN GOVERNMENT AND PRIVATELY OWNED HOSPITALS

 

ABSTRACT

 

This research work on A Comparative Study of Expenditure Controls method in Government and private Hospitals is aimed at studying and analysing the different methods of expenditure control that is being adopted by these hospitals, their practical application and their level of effectiveness. It is aimed at carrying out a comparative analysis of two hospitals. To achieve the aim of this research, secondary data through textbooks and journals were used to review some of the related literatures. Equally, questionnaires, interview and observation, which sought to find out facts needed for analysing, were used.

 

 

The questionnaires were analyzed by simple percentages while hypothesis were tested using chi-square statistics. The findings of the analysis indicate among others that the method of expenditure control used by both hospitals are not the same; The daily control method for private hospitals and the vote card method for Government Hospitals. The different methods of expenditure control used by the two hospitals are effective, but with slight loopholes associated with vote card method. I recommend among others that both hospitals should adhere strictly to authorization procedure for drug purchased and materials purchases. Both hospitals should exhibit high degree of cash management and employ competent personnel for proper and efficient expenditure control.

 

TABLE OF CONTENTS

 

Approval page ii

Certification page iii

Dedication iv

Acknowledgement v

Abstract vii

 

Chapter One

 

1.0 Introduction 1

1.1 Background Of The Study 1

1.2 Statement Of the Problem 4

1.3 Objectives Of The Study 6

1.4 Research Questions 6

1.5 Formulation Of Hypotheses 7

1.6 Significance Of The Study 8

1.7 Scope Of The Study 9

1.8 Limitations Of The Study 9

1.9 Definitions Of Terms 10

 

Chapter Two

 

2.0 Review Of Related Literature 12

2.1 Introduction 12

2.2 Overview Of Expenditure Control 12

2.3 The Expenditure Control Methods 14

2.4 Internal Auditing Overview 19

2.5 Management Audit 25

2.6 Cost Benefit Analysis 27

2.7 Quantitative Models For Expenditure Control 28

2.8 Items Related To the Income Generated In A Hospital 32

2.9 Items Related To The Expenditure Of A Hospital 36

2.10 The Expenditure Control Method That Are In Application 37

2.11 Vote Card Method of Expenditure Control 42

 

Chapter Three

 

Research design and Methodology

3.0 Introduction 45

3.1 Sources of Data 46

3.2 Research Instrument 47

3.3 Reliability and Validity of Research Instrument. 48

3.4 Population 49

3.5 Sample Size/Technique 50

3.6 Administration Of Research Instrument 52

3.7 Method Of Data Analysis 52

3.8 Decision Criterion For Validation Of Hypotheses 53

 

Chapter Four

 

4.0 Data Presentation and Analysis 54

4.1 Data Analysis/Presentation 54

4.2 Testing Of Hypotheses 67

4.3 Discussion of Findings 75

 

Chapter Five

 

5.0 Summary of findings, Conclusion and Recommendations 78

5.1 Summary of findings 78

5.2 Conclusion 79

5.3 Recommendation s 79

Bibliography 82

Appendix 1 85

 

Appendix 2 86

 

CHAPTER ONE

 

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Expenditure control or cost control is part of management control process, in every organisation.

This process is very important to any organisation be it profit making organisation or non-profit making organisation. Thus, lack of this practice in any organisation will cause misapplication of cash in cash disbursement process and this will create a very big problem leading the organisation into deficit and at an extreme case, the organisation might wind up. Many researches have been conducted in the reason for winding up of companies and organisation in which lack of expenditure control process had found responsible.

Expenditure control has been defined as the process by which managers utilize effectively and efficiently, the scarce,

 

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