Financial Management and Pharmaceutical Procurement Budgeting in Hospitals: Challenges and Solution

Khanbabayi Gol, Sajad; Khanbabayi Gol, Mehdi

doi:https://zenodo.org/records/14736013

Financial Management and Pharmaceutical Procurement Budgeting in Hospitals: Challenges and Solution

Document Type : Review Article

Authors

Sajad Khanbabayi Gol ¹

Mehdi khanbabayi gol ²

¹ D

² Anesthesiologist, Tabriz University of Medical Sciences, Tabriz, Iran.

https://doi.org/https://zenodo.org/records/14736013

Abstract

Pharmaceutical procurement and budgeting are critical aspects of financial management in hospitals, directly influencing their ability to provide quality care while controlling costs. Rising drug prices, regulatory challenges, supply chain disruptions, and inefficient procurement practices present significant hurdles for hospital administrators. Efficient management of pharmaceutical expenditures is vital not only for the financial sustainability of healthcare institutions but also for ensuring that essential medications are available to patients in a timely and cost-effective manner. This paper examines the challenges faced by hospitals in pharmaceutical procurement and budgeting, with a focus on rising drug costs, regulatory compliance, and supply chain vulnerabilities. It also discusses strategies that can be employed to optimize pharmaceutical purchasing, such as centralized procurement systems, bulk purchasing agreements, technology integration, evidence-based decision-making, and the promotion of generics and biosimilars. By adopting these strategies, hospitals can better manage their pharmaceutical budgets, ensure access to necessary medications, and maintain financial stability. This study provides insights into how hospitals can balance cost-control measures with high-quality care, ultimately leading to more efficient and sustainable healthcare systems.

Keywords

Pharmaceutical Procurement

Budgeting

Drug Costs

Healthcare Sustainability

Subjects