Developing governance of procurement department in hospitals

Abstract

In for-profit and nonprofit companies, procurement and accounting departments are very tricky in terms of fraud. Transactions in these two units’ and their relationship should be audited meticulously and continuously by auditors. If the hospital management doesn’t like to hire an internal auditor or certified fraud examiner, they should be ready to face. As in the other sectors, various irregularities can also be seen in health institutions. Purchasing and accounting departments are the leading departments in the health companies where fraud activities happen frequently. It can be observed that the employees have misconduct towards the companies they work for. Especially the employees who are not happy with their salary think she/he works more than other employees may commit the crime. There is a need for a rigorous and practical audit and control mechanism in the purchasing department where fraudulent incidents can be seen in many different ways. In this chapter, the procurement procedure in hospitals, a procedure in procurement departments, fraud prevention techniques in the procurement department, and cases from Turkey are discussed in the chapter.