HOSPITAL BUSINESS.

Manawatu Herald, Volume XLII, Issue 2094, 24 February 1920, Page 4

HOSPITAL BUSINESS.

ECONOMIC PURCHASING. A CENTRAL BOARD OE SUPPLIES. “The economic aspect of a centra! purchasing organisation for hospital hoards,” is the subject of an article in the Journal of Public Health. Considerably abridged, the article is as follows: —■ “A circular has been sent tec every Hospital Board covering schedules of articles commonly used in hospitals, an at tempt ha ving been.made in compiling’ the. schedules to achieve something in the nature 'of a preliminary standardisation as regards materials, sizes, qualities, etc;. ' Boards have been invited to notify the Health Depart-' menl of their requirements in order that a consolidated order may be placed direct with the manufacturing houses, with a view to bedrock prices being obtained. The articles being despatched- direct from the factory to the "hospital store, considerable .overhead charges should be avoided, the Department further making no administrative charges for undertaking the work. In addition to the schedules forwarded, other schedules have been prepared of articles of New Zealand production, with a view to quotations being obtained, of which Hospital Boards can avail themselves.

“It is quite possible that the question may be raised that such action on the part of the Department m wrong in principle, as being inimical lo the local business houses. Such argument would be totally fallacious, and it is to emphasise the nnsouudaess of such reasoning that this article is written. Public institutions are entitled to buy in (he cheapest markin' possible, and it is the duly of the representatives of the'public to protect the interests of the public as a whole, and not merely a small section of it. As tho law, stands, no person interested in a hospital contract can hold a scat upon the Board, and therefore hoard members are free from any personal interest.in this matter. “THE TRADE WON’T STAND IT.”

“The argument that ‘the trade won't stand it’ ism bogey that, should hardly materialise. The.trade has, it is true, expressed the .view that the hospital contracts arc the legitimate spoils of the retailers, and it is understood wholesale associations have in some localities decided" that their members should not: lender for the contracts. -There arc, of course, the usual hints ahmrj moving the Government in the matter; but State business enterprise, such as coal mines, is apparently overlooked by those who think the Government would lend an car to arguments advanced against a simple business proposition. Such op-) ponenfs of the proposals apparently also overlook the combinations effected by the numerous farmers’ cooperative societies combinations for purchasing not for the retailer, but for the consumer. Objectors also overlook'tlic fad that Ansiralian hospitals have combined for the purpose of purchase, buying direct from the factory through a central Board of Supplies, and that no boycott or other vangeane'e has resulted to any one therefrom. Combination for the purpose of buying is in fact 'much more general and successful than combination for selling or any other purpose. . . - “The buying of hospital supplies is business, and thus comes within the dutches of this conscienceless machine which is incapable of deal--

ing with sentiment The person who argued against any sound business step on the ground that it is bad for, existing trade organisations is as misguided as those who argue against the establishment of railways because they would prejudicially affect the stage-eoaeb business. .... Let us follow,

this particular matter to its logical conclusion. Let us assume that the loss of the local hospital contract is going to materially affect the local retailers —a very unlikely contingenev. It must be remembered that it to the same extent benefits the local ratepayer, and the local ratepayer Ims consequently more money to spend with the local storekeepers* so tho position as regards the retailer ‘ remains as before, but the ratepayer,’ besides saving money.) also gets a choice in the spending of Ins money.

' ELIMINATION' OF WASTE. "Why, therefore, should a erude method of purchasing - bo continued when by combination not only can bettor prices be obtained, but: further advantages, such as reduction in freights, and other rebates, car* be obtained, such charges being in inverse ratio to the size of the consignment. . . . Crouds purchased on a scientific, and economical basis are more likely to be used in a seien-, title and economical manner than goods purchased as required in a hand-to-mouth manner. Local administrative officers learn to estimate their requirements, to question their estimates, and review the actu - ality and reasonableness of their needs from such estimates; in fact, a scientific and proper spirit of organisation and administration is inculcated, - and co-opei'ation in this direction should lead to further cooperation, standardisation, and the elimination of waste. IMPROVED HOSPITAL ORGANISATION. “The cost of our institutions is high, and is growing yearly to an alarming extent. This journal has pointed out from time to time direc-i lions in which the local Hospital Boards could restrain such expenditure, or at least offset it, by sys-

tematic efforts in the collection of revenue such as patients' fees. The Department forsees a great outcry amongst the contributory local! authorities after the 31st March, when the levies are made for the ensuing year. It, is extremely probable that the levies will be heavier than ever, as many boards will have to add heavy current overdrafts for maintenance expenditure to their already heavy estimated requirements. Boards, therefore, must be prepared to face considerable criticism, and will do well to see that their houses are in order, and their administrative methods above reproach. Moreover, the Department, as contributing approximately half of the boards’ financial requirements, is itself interested im the matter, and cannot contribute its subsidy to be' spent otherwise than in a sound and businesslike manner. It is, in fact, not anticipated that boards as a whole will do oilier than welcome the proposal. It was the Wellington Board that in Jt)l7 called a conference of other boards, which passed a resolution in favour of the Department initiating a system of combined purchasing, and this action of the Department is only the result of such conference, the delay in taking the necessary steps being caused by the pressure of work resulting from .the influenza epidemic, shortage of staff, changes, amFreorganisatibu. Finally, it is hoped that all thofie large boards who are in a position to buy more or less direct from the manufacturers themselves will unselfishly agree to throw their orders in with the others, so as to help their less fortunate neighbours,”