An assessment of financial and supply chain management outcomes in Western Cape public hospitals
Date
2005-03
Authors
Lewis, Hendrik Archie
Journal Title
Journal ISSN
Volume Title
Publisher
Stellenbosch : University of Stellenbosch
Abstract
South Africa, as a young and emerging democracy, faces many challenges
regarding the transformation of the socio-economic landscape of the South
African society. The provision of better health care services and the overall
development and empowerment of society are some of the many challenges
government has to resolve. This research focuses specifically on service
delivery in public hospitals with special emphasis on:
An assessment of financial management outcomes within the context
of the implementation of the Public Finance Management Act (Act 1 of
1999, as amended) [PFMA] in public hospitals; and
An assessment of supply chain management (SCM) outcomes in
relation to the achievement of empowerment and equity of
disadvantaged communities within the context of Black Economic
Empowerment (BEE).
The PFMA is the result of financial reform in South Africa. The PFMA
emphasises effective, efficient, economic and transparent use of public funds.
This research assessed the financial management at the Head Office of the
Western Cape Health Department, as well as at Karl Bremer, Lentegeur and
Swellendam Hospitals for the financial years 1998/99 to 2002/03.
The Western Cape Tender Board ceased to exist in December 2003. The
procurement and provisioning processes have now been decentralised to the
various departments with effect 1 January 2004 and have become the
responsibility of supply chain units within departments. BEE and the
preferential procurement policy are government initiatives that had to be
executed on SCM as platform. The three hospitals were also used to assess progress on the implementation of SCM, as well as the realisation of BEE
objectives.
Annual Reports, Audit Reports and Strategic Planning documentation were
used to extract the relevant information necessary for the research. Interviews
with nineteen (19) officials were conducted.
Good progress has been made with the implementation of the PFMA. All
those officials that were interviewed displayed sensitivity for the responsible
management of public funds. A lack of internal control measures was
identified in almost all audit reports. The absence of a risk management plan
and a functional internal audit unit is hampering the realisation of the
objectives of the PFMA.
With health care service delivery and black economic empowerment being
topical issues in SA, this research endeavours to make recommendations that
could assist the Western Cape government with the realisation of the intended
objectives of better health care services delivery by public hospitals,
transformation of the economy, equity and empowerment of the
disadvantaged through SCM processes and eventually to secure “a better life
for all”.
Description
Thesis (MPA (School of Public Management and Planning))--University of Stellenbosch, 2005.
Keywords
Public hospitals -- South Africa -- Finance, Business logistics -- South Africa, Dissertations -- Public management and planning, Theses -- Public management and planning