The Finance department is one among 7 departments of Nkinga referral hospital which is entrusted with a responsibility to manage financial resources. Finance department is organized into two units namely; Revenue unit, Budget and Final accounts unit. These units discharge their duties and responsibilities in accordance with Hospital financial regulations, Government standing orders and International Financial Reporting Standards. The Department is manned by employees, of this units Four are senior accountants, assistant accountants while are accounts assistants.
The responsibility to ensure that duties and responsibilities entrusted to the Department of Finance are efficiently and effectively carried out rests with Department in collaboration with Head of Finance and Heads of Units.
Revenue Unit deals with revenue collection, billing, and credit controlling and treasury management. The Unit is manned by 8 employees by means 7 assistant accountants and 1 Revenue Officer who report to the Head of Unit. The Head of Unit is responsible to supervise and ensure that revenue is effectively and efficiently managed.
Revenue Collection Function
The Hospital serves patients referred by district hospital also referred patients from public hospitals are categorized as public patients who according to National Cost sharing Policy, are required to contribute a relatively small amount of fee to enable the Hospital to sustain service provision. The Hospital also serves non/referred patients. These patients are categorized as private. Some of private patients pay upfront cash before accessing needed services, while others receive needed services on credit basis. Offering of services on credit basis is done, once the Hospital has entered into agreement with patient’s employers or medical insurance firms.
The Hospital has one cash collection points located at Out Patient Department (OPD) for convenience purposes helping patient easy to rich the Doctors offices thee they can start getting services. These Point manned by two cashiers to three depending on the number of the number of patients attended at a cash collection points. The points operated during the official working hours from 07:00am to 09:00pm the rest hours is managed by the OPD dedicated Staffs at night and report the collection to the Revenue Officer the following day.
Billing and Credit Control Function
As stated in previous section, the Hospital Offers services both on cash and credit basis. Our credit policy provides 30 days from bill dispatch date, for credit clients to settle their bills. The billing section is responsible to ensure that services provided to credit clients are completely captured; bills are timely prepared and dispatched. The billing and credit control is also responsible to ensure that credit clients comply with mutually agreed terms and conditions as stipulated in their respective contract for service.
Each ward having its own billing cost and because of that a Patient-relative or a patient exactly should pay some cost as an advance before discharged to wards and thereafter the revenue Unit has an accountants from Cashier office whose their mainly duty is to ensure that our in-patients or patient relatives are posted with their bills position and take appropriate actions to ensure that bills are settled.
Procedures for accessing credit facility
The Hospital has an arrangement for which cooperate clients are offered medical services on credit basis. This happens once a contract for services is entered between cooperate clients and the hospital . Government offices (Ministries, Agencies, Independent departments) Parastatal organizations, Insurance companies and Private companies wishing to receive medical services from Nkinga Referral Hospital on credit terms, should follow the following procedures:
1.Submit an application letter addressed to the Hospital Office Doctor In Charge . The letter should be accompanied by the following documents:
ii.Institution/Company operating registration and License
iii.Audited financial statements for the latest three years
2.On receipt of the above stated documents, the credit committee shall evaluate the applicant to determine its credit worthiness based on the character, capacity and capital.
3.Once it is established that, a potential credit client meets all criteria set, acceptance letter accompanied by a standard contract shall be sent to the applicant.
4.Once Both Parties are satisfied with terms and condition of contract for service, the contract shall be signed and starts to be executed.
We are theprivate institution, due to this big demand expansion for medical services against limited financial resources, hospital activities operations is very difficult, thy we fail to adhere the National Health Policies, like to give some patient a free of charge medical care, especially when it comes to the issues of drugs and other medical supplies purchases. The prices for most items are high to an extent that some cannot afford to pay drug bills even if they are sold at their cost price, leave alone bills for surgical procedures. As if that was not enough, salaries for hospital employees is becoming a burden for managing hospital staff turnover. There is a law that directs employees to follow government circulars to pay salaries to their employees which in turn forces Faith Based organization to do the same, the situation which does not match with the income they use to generate. That’s why the hospital fails to give the free of charge medical care lather but their three NGO’s (PMTCT, CTC AMREF which collaborate with the hospital some patients falling under the following categories:
iii.Prevention of Mother to Child Care.
Budget and Final Unit
This unit is responsible to ensure that financial claims of internal and external clients are timely settled (Expenditure). Duties of employees in Budget and final Unit include the following:
1.To ensure that staff, supplier’s claims and other claims are timely processed for payment.
2.Before making payment, check whether payment approvals have been obtained and that claims are fully supported by relevant documents.
3.To ensure that special projects funds are efficiently managed and utilized for intended purposes in line with funds provider conditions.
4.To liaise with bankers ensuring payments are timely credited to payee respective bank accounts.
5.Checking all claims to ascertain whether payments procedures have been followed before affecting any payment.
6.Prepare of management and financial reports.
7.Verify whether requests to spend were budgeted for and that expenditure does not exceed approved budget limits.
8.Preparing annual institution budget for Nkinga Referral Hospital with all the finance crew (Accountants) and evaluate weekly & monthly updates.
9.To ensure implementation of internal audit recommendations.
10.To prepare quarterly progress report on implementation of the Nkinga referral hospital corporate strategic plan and facilitate conducting of internal and external evaluation of Nkinga referral hospital performance.
11.To review financial budgets and cash flow projections.
12.To facilitate the auditing of Nkinga Referral Hospital books of accounts by both internal and external auditors.
13.To periodically review general ledger entries to check accuracy and compliance with the established rules and accounting principles.
Source of Hospital Income
The hospital got an annual contribution from Sweden 18.5% of the total income. Contribution from the government is about 17% of the total income. Income from own sources (patient’s fee and other local sources) is about to 60% of the total income.