Budget Allocation and Management of Hospitals in Qingdao: Basis for Strategic Plan

Abstract

The level of hospital budget management in China is uneven, and there are many problems in the process of budget management, such as unscientific budget preparation, uncontrolled budget implementation, and no performance evaluation of budget completion. This study examined the current state of hospital budget management in China, which highlights significant challenges such as unscientific budget preparation, inadequate control during implementation, and the absence of performance evaluation. These issues are compounded by communication gaps between departments, unclear responsibilities, and overall inefficiency in information integration, resulting in suboptimal budget management outcomes across the board. To shed light on this situation, the researcher conducted a qualitative study focusing on five public hospitals in Qingdao province, China, using in-depth interviews with financial directors to gather data. The findings revealed a mixed landscape where hospitals were aware of budget allocation and management practices but faced common challenges. Consequently, the study proposes a strategic action plan aimed at improving budget allocation and management practices in these hospitals. This plan emphasizes the need for streamlined processes, improved communication and coordination, clearer responsibilities, enhanced information integration, and performance evaluation mechanisms to optimize budget management outcomes and ensure efficient resource allocation to meet hospitals' growth and development objectives.