IMPACT OF BUDGETS AND BUDGETARY CONTROLS ON PERFORMANCE (A CASE STUDY OF SELECTED PUBLIC HOSPITALS IN KUMASI METROPOLIS)

Abstract

Budgeting and budgetary controls are tools of financial management, designed for achievement of goals and objectives of organizations of which hospitals are part of. It is in this vein that this work explored on the possible impact of budget and budgetary control on the hospital performance in Kumasi metropolis. The focus was on four public hospitals namely Seventh Day Adventist hospital, Menhyia government hospital, Suntreso government hospital and South government hospital. In the course of this research work 60 workers at various hospitals were taken as sample population. The research found out among other things that hospitals prepare budgets and controls. It also revealed that those who involve budget gain better performance over those who do not. However, poor budget formulation and implementation and low revenue generation base make it difficult for these hospitals to live up to their responsibility as health care institutions. It is recommended that subordinates are always involved in budgeting; it is also recommended that the hospitals keep involving the practice of budget so as to improve on performance. This would ensure that the hospitals target.