ABSTRACT
In a hospital, after human resources, materials and medicines are the second largest consumer of its budget. The pharmacy is a major source of profit in private hospitals; accordingly, medicines and materials are of particular interest to management. The materials management department in a hospital is generally headed by a mid-level manager, and sometimes by a top-level manager. The department is comprised of three main sections: procurement section, central store, and pharmacy. Each section is headed by an assistant manager. The materials management department broadly performs three functions: procurement; inventory management; and supply, issue or disposal. The top management of an organization generally decides the budget for purchasing materials in each financial year. The materials management department should try to ensure the availability of every item of the hospital formulary in their stock and the consultants should try to restrict their prescriptions to the formulary.
