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Essay text:
The major challenge for the authority is to maintain its high quality public healthcare services with limited budgetary in line with the Government’s curb on public expenditure. It highlights the main objective of this project – cost reduction.
Nowadays, management tends to put more efforts on purchasing activities because of recognition of potential contribution to cost cutting. Commodity purchasing is the greatest expenditure for the authority except the payments to personnel as revealed in the spend analysis. The Audit Commission Hong Kong even points out that high costs are attributed to the uncoordinated procurement among hospitals and high inventory carrying costs...
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