An assessment of financial and supply chain management outcomes in Western Cape public hospitals

[摘要] South Africa, as a young and emerging democracy, faces many challengesregarding the transformation of the socio-economic landscape of the SouthAfrican society. The provision of better health care services and the overalldevelopment and empowerment of society are some of the many challengesgovernment has to resolve. This research focuses specifically on servicedelivery in public hospitals with special emphasis on:���� An assessment of financial management outcomes within the contextof the implementation of the Public Finance Management Act (Act 1 of1999, as amended) [PFMA] in public hospitals; and���� An assessment of supply chain management (SCM) outcomes inrelation to the achievement of empowerment and equity ofdisadvantaged communities within the context of Black EconomicEmpowerment (BEE).The PFMA is the result of financial reform in South Africa. The PFMAemphasises effective, efficient, economic and transparent use of public funds.This research assessed the financial management at the Head Office of theWestern Cape Health Department, as well as at Karl Bremer, Lentegeur andSwellendam Hospitals for the financial years 1998/99 to 2002/03.The Western Cape Tender Board ceased to exist in December 2003. Theprocurement and provisioning processes have now been decentralised to thevarious departments with effect 1 January 2004 and have become theresponsibility of supply chain units within departments. BEE and thepreferential procurement policy are government initiatives that had to beexecuted on SCM as platform. The three hospitals were also used to assess progress on the implementation of SCM, as well as the realisation of BEEobjectives.Annual Reports, Audit Reports and Strategic Planning documentation wereused to extract the relevant information necessary for the research. Interviewswith nineteen (19) officials were conducted.Good progress has been made with the implementation of the PFMA. Allthose officials that were interviewed displayed sensitivity for the responsiblemanagement of public funds. A lack of internal control measures wasidentified in almost all audit reports. The absence of a risk management planand a functional internal audit unit is hampering the realisation of theobjectives of the PFMA.With health care service delivery and black economic empowerment beingtopical issues in SA, this research endeavours to make recommendations thatcould assist the Western Cape government with the realisation of the intendedobjectives of better health care services delivery by public hospitals,transformation of the economy, equity and empowerment of thedisadvantaged through SCM processes and eventually to secure 'a better lifefor all.

[发布机构] Stellenbosch University