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A COMPARATIVE STUDY ON EXPENDITURE CONTROL METHODS IN GOVERNMENT AND PRIVATE HOSPITALS

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A COMPARATIVE STUDY ON EXPENDITURE CONTROL METHODS IN GOVERNMENT AND PRIVATE HOSPITALS

 

CHAPTER ONE

 

1.0 INTRODUCTION

 

1.1 STUDY BACKGROUND

 

Expenditure control or cost control is under the management control process in each organization. This process is very important for any organization, whether for-profit or non-profit organization making. Thus, the absence of this practice in any organization will result in a misapplication of cash in the cash disbursement process and this will create a very large organization leadership problem in the deficit and in extreme cases, the organization could end. Much research has been conducted in the reason for the dissolution of companies and organization in which the lack of expenditure control procedure was found liable. Expenditure control has been defined as the process by which managers efficiently use the scarce resource in achieving organizational objectives. At this point, let us look at the expenses and control the distinct perspective

 

  1. Spending is the total amount spent on the process of trying to achieve a specific organizational goal. Control means to control, limit, or exclude teach something or someone’s actions. He or organization managers to restrictions on wage increases, emigrate credit and so on (which are all expenses). Respectively, this research work, which is the comparative study of methods for controlling spending on public and private hospitals, a study by the University of Nigeria Teaching Hospital Enugu (UNTH) and the Toronto Hospital and the Onitsha maternity; this implies a comparative study of non-profit organizations that, since UNTH is government property while the Toronto Hospital Hospital is a private property as a for-profit organization category. Non-profit organizations are characterized by the following:

 

  1. a) There is neither a profit nor a conscious expectation of earning net income.

 

  1. b) No benefit of any surplus income over expenditure is distributed to those who contributed supported by taxes and voluntary donations.

 

  1. In profit organizations, the reverse of these characteristics is the case in the sense that their main objective is to maximize profits and the excess of revenue over expenses are given to the organization’s owners. Government owned hospitals pay more attention to the services they provide to the public, their main objectives is to provide services that respond to social needs for those who do not have the purchasing power to acquire these services themselves -mêmes. Regardless of the fact that private hospitals try to make good and quality services to the public, they pay more attention to maximizing profits that their major objective. Comparative study of spending control in government and the private hospital that is important research question in this research work needs with different means and methods by which expenditure is controlled in each of the hospitals so they do not work not in the deficit or liquidations. According to Johnson (1976), the management control concept that imbibes expenditure control are the same organizations, both in the profit-oriented and non-profit oriented, but the involvement of these concepts 3 differ in the important respect. We would also whether the expenditure control methods are the same or different in the two hospitals under study, own the fact that one is for-profit and the other is non-profit oriented.

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