The management of the internally generated funds (IGF): the case of Kintampo Hospital

Thumbnail Image
Journal Title
Journal ISSN
Volume Title
The main source of financing health service in Ghana is public funding. Public funding is becoming scarcer and scarcer as a source of funding non-wage recurrent expenditure. There is the search by all stakeholders for an alternative source of funding. The Internally Generated Fund (I G F) resulting from the introduction of cost recovery practices (L 113 13) in health institutions, could be a source of funding, if rationalized. The study therefore assessed the management of the I G F at the Kintampo hospital (1997—1 999). A cross- sectional study using structured interview guide was administered to a randomly selected sample (N = 47) of the community and staff (N=33) of the hospital. Primary and secondary data were also collected from the hospital .There was also direct observation of the hospital staff activities in the performance of their duties. The study indicated that 81% of the community’s respondents were not happy with the current revenue collection procedure and recommended a central revenue collection point Likewise, there hasn’t been any review of fixed charges of non drug consumables used at the hospital since 1997. There was also a deficiency in the internal control mechanism, as no randomized “on the spot “checks have been instituted as recommended by the I G F policies. The study also indicated that material resource management was poor due to the top- bottom planning approach used in the hospital. Financial management was excellent and the contribution to the I G F to the non-wage recurrent expenditure was 63.15%, 72% of which was used to service the running cost of the official vehicle, management information system (M I S) related logistics, while 19% was used for local employment of additional staff The I G F was assessed to be 59.6% efficient using a point rating system. The system could further be improved by the hospital management adopting a bottom-up planning approach, improve on the internal control mechanism and seriously take cognisance of the community’s recommendation to improve the revenue collection procedure to rationalize the I G F generation as an alternative source of funding nonwage recurrent expenditure.
A thesis submitted to the Board of Postgraduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfilment of the requirement for the award of Master of Science in Health Services Planning and Management, 2000