Preparing and justifying the budget for new or improved services
Williams, R.B.
American Journal of Hospital Pharmacy 41(1): 133-141
1984
ISSN/ISBN: 0002-9289 PMID: 6421153 Document Number: 222265
The process of preparing and justifying the budget for a new or improved hospital pharmacy service is described. Factors that influence the justification process include the rationale for the new service, facts needed for the decision-making process, the political process within the hospital, timing, and salesmanship. Steps preliminary to preparing the proposal include identifying hospital and departmental goals, relating the proposed service to those goals, assessing the odds of new service approval, and establishing priority for development of the proposal. The components of a formal proposal are discussed, including the budget that describes the financial feasibility of the service. A sample proposal is presented. Prospective pricing does not necessarily eliminate the opportunity for development of new hospital pharmaceutical services. However, the need, cost, revenue, and benefits of such services must be thoroughly justified on a hospital-specific basis.