A Study On The Internal Control Of Public Hospitals

Public hospitals as typical organizations in a professional field of public institutions in China, but also as the most important subject providing medical services, is closely related to healthy lives of all individuals and families, as well as social public interests. To a great extent, whether a public hospital have a effective operation and management, depends on the construction and practice of its internal control. With the complicated changes and development of policy environment, economic substance, market competition and other factors, the operation and management of public hospitals is facing a severe test, especially in recent years, financial fraud, illegal charges, medical resources abuse, medical accidents, the contradiction between doctors and patients occurred frequently, has exposed the fact that hospital internal control is not yet designed perfectly or carried out completely. Financial accounting work is vital for any organization’s survival and development, this paper makes a study combined with the specific economic business of hospital, mainly in the view of internal accounting control.Based on the integrated framework of internal control theory and risk management theory, have connected with unique properties of public hospital, this paper analyzes its characteristics and defects, as the result from the perspective of the five elements of internal control, for instance, the energy to improve internal control is not sufficient, there are different types of risk sources, high professional degree to analyze and handle risks, revenue and expenditure of funds is the core of control activities, information technology has been widely used promoting more effective communication, unreasonable organizational governance structure leads to weaken the supervision productivity.This paper takes C hospital as a case study, regarding the “administrative institutions internal control standard(try out)” as an important reference guide, engaging making suggestions and designations in optimizing internal control from organizational and business two levels. Optimizing suggestions from organizational level consists of improving institution framework, information disclosure in decision-making, using job separation method in execution, increasing the status of internal audit, and so on. Optimizing designations from business level, realizing detailed decomposition of various economic business process, specifying the responsibilities of each position and their control activity scope, introducing the concept of risk points and considering it as an important measure of supervision and evaluation for internal control. Then analyze advantages and disadvantages by assessing C hospital’s overall running situation in internal control, puts forward the improvement advises.