Business wise, hospitals walk a very fine line of revenue-to-expenses ratio. Typically, hospitals earn revenue from three major sources- Patient care, non- medical services like Cafeteria, Parking fees, Space or equipment rentals, research grants and income from marketable securities, donations, shares.
Likewise, expenses are incurred proportionate to revenue. Statistics say that salary for hospital employees make about 60% of their expenses, buying supplies make 30%. Additionally, they also incur expenses for maintenance, mortgage and many other. Everything put together if the revenue to expenses ratio is more than one, it implies the hospital is making profit.
Given the importance, this profit and loss dynamics is taken care of by a specialized Finance Team. However, in a medium to large hospital set up the number of financial transactions per day in all departments are astronomical and so, makes it impossible for the team to record them manually. This need is addressed by Paras HMIS Financial Management Module. It interlinks all departments within the hospital and updates accounts real time. For instance, every time the billing department bills a patient and every time the HR compensates a staff, the Module picks up the details and immediately updates the accounts.
PARAS Financial Management System offers these benefits to the hospitals:
All the accounts and ledgers are updated on real time basis and balance can be verified anytime.
Reports of receivable and payable accounts can be generated anytime.
Income & Expenditure account reflecting accurate revenues and expenses is made available.
Balance Sheet with accurate assets and liabilities can be calculated as required.
Depreciation on Fixed Assets is calculated pro rata wise.