Public Budgeting for Health Administrators/Managers

Public Budgeting for Health Administrators/Managers

More than any other public service delivery sector, the health care sector operates under a

steady audit for transparency, accountability and provision of high quality services to the

citizenry. The health care sector has many special characteristics. Unlike other public good, the

sector has features of a credibility good, where pre-consumption search and the real experience

are not enough to reveal the service quality provided to the target audiences who are the citizenry

(Arman et al., 2009, pp. 718-723). Consequently, an effective public

budgeting for health administrators is critical to enhancement of high quality health care services

and effective management of related agencies.

Health care sector is a unique governmental unit that is differentiated by the multiplicity of

services that are offered by the sector. Provision of services in this sector ranges from provision

to treatment of diseases (Arman et al.,2009, pp. 718-723). Treatment

may involve acute or chronic health problems. Furthermore, health problems may be entirely

individual or have collective perspectives or may involve specific groups such as women, the

disabled or women. In short, health care increasingly entails the need to pay attention to

extensive features of well-being. From an economic perspective, the critical issues involves the

extent of spillovers related to each unit of health care, the minimum levels of efficiency in

service provision and economic potential in terms of costs or benefits. The diversity of services

provided in the public health sector necessitates the need to subdivide patterns of spending in this

critical area of public administration.

In many face value ways, public budgeting does not differ much from household

budgeting. The funds available to spend on public expenditure and development projects are

always less than public needs. In a general sense, the budgeting process is characterized by an

abundance of certain information and an absolute lack of other necessary information required

for making rational choices (Gibran & Sekwat, 2009, pp. 619-620). The time-frames for

decision-making in the budgeting processes are usually too short even where the necessary

information is available.


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