Financial and materiel management.

Hospitals have to purchase new technology, update equipment, and replenish supplies continually to meet the needs of patients and the medical and nursing staff in a sound financial way. Thus, inventories must be maintained accurately and adequately with proper controls. Awareness of the cost of capital and operational supplies is essential to meeting budget allocations. With or without centralized buying, the MM department has the expertise to assist every department in purchasing to meet its needs and in setting and resetting inventory levels for its supplies. Explanations and formulas for handling capital equipment and regular supplies and some formats have been presented to facilitate the process. Because OR items are both expensive and numerous and OR storage space the most costly space in the hospital, physicians and nurse managers must understand the financial processes and inventory management and educate their staffs in these matters.