Circular No. 60/2002/TT-BTC guiding financial management for charitable healthcare facilities under the Vietnam Red Cross Society.

 CIRCULAR

Guidelines for Financial Management of Charity Medical Facilities under the Vietnam Red Cross

Pursuant to Decree No. 73/1999/NĐ-CP dated August 19, 1999 of the Government on socialization policies for activities in the fields of education, healthcare, culture, and sports;

The Ministry of Finance hereby provides guidelines for the financial management mechanism of the medical facilities providing charitable healthcare under the Vietnam Red Cross as follows:

A/ GENERAL PROVISIONS:

1\. The Circular applies to general hospitals, specialized hospitals, general clinics, specialized clinics, maternity homes, health service facilities, traditional medicine practice establishments established and managed by the Vietnam Red Cross at various levels (hereinafter referred to as charitable healthcare facilities under the Vietnam Red Cross).

2\. Charitable healthcare facilities under the Vietnam Red Cross operate with humanitarian purposes and not for profit. Their main sources of finance are formed through fundraising and voluntary contributions from organizations and individuals both domestically and internationally.

3\. Financial operations of charitable healthcare facilities shall follow the principle of self-funding, self-accounting, and support from the Vietnam Red Cross at various levels (if available).

4\. Charitable healthcare facilities under the Vietnam Red Cross must comply with current state regulations on professional and technical standards and other relevant laws.

5\. Free examination and treatment beneficiaries include: the poor, elderly without support, orphaned children living on the streets, disabled children, war victims, policyholder families, highland ethnic minorities, remote area residents, and other groups supported by domestic and international sponsors.

6\. Examination and treatment beneficiaries subject to fees include those who voluntarily seek medical services and those holding health insurance cards referred by health insurance authorities.

B\. SPECIFIC REGULATIONS:

I\. SOURCES OF REVENUE FOR CHARITABLE HEALTHCARE FACILITIES:

- Financial and material donations from organizations and individuals both domestically and internationally.

- Support from the Vietnam Red Cross at various levels (if available).

- State budget support at various levels for specific cases as prescribed by law.

- Revenue from health insurance payments processed by health insurance authorities according to regulations.

- Revenue from services requested by the public. Charges are based on covering all costs of examinations and treatments. For medicines (excluding donated medicines), charges are based on purchase price plus storage, transportation, and distribution costs, excluding interest.

- Other revenues as prescribed by law.

- Self-owned capital of healthcare facilities.

II\. EXPENSES OF CHARITABLE HEALTHCARE FACILITIES:

1\. Regular expenses:

- Salaries, wages, allowances, bonuses for medical staff as stipulated by the state; contributions to social insurance, health insurance, and trade union fees as prescribed by the state.

- Administrative and logistical expenses for medical examinations and treatments: electricity, water, environmental sanitation, fuel, office supplies, communication, propaganda, travel expenses, seminars, training sessions, etc., according to current state regulations for administrative and public institutions.

- Professional expenses:

+ Direct costs for patients as prescribed by doctors.

+ Expenses for scientific research related to medical examinations and treatments.

+ Training and upgrading the professional skills of medical staff.

- Maintenance and repair expenses for fixed assets.

- Other expenses: receiving, transporting, storing, managing, and distributing donated goods, rental fees for working premises (if applicable).

2\. Irregular expenses:

- Expenses for epidemic prevention campaigns (if applicable).

- Major repairs and purchases of fixed assets.

- Development investment expenses for medical facilities from depreciation revenue (if applicable).

- Basic construction investment expenses (if applicable).

III\. FINANCIAL MANAGEMENT MECHANISM FOR CHARITABLE HEALTHCARE FACILITIES:

1\. Management of donated medicines, materials, and equipment:

- Conduct medical examinations and treatments and provide free medicines according to the specified beneficiaries of the donors and this Circular. Strictly prohibit the sale of donated medicines, materials, and equipment.

- Maintain separate records of the receipt, issuance, and inventory of donated medicines and goods according to current state regulations.

- In cases where donated medicines, materials, and equipment are unsuitable for the level of treatment provided by the facility, the Vietnam Red Cross at various levels will establish a committee (including the Vietnam Red Cross, financial and pricing authority at the same level, health department or district health center) to appraise and exchange for suitable items. Exchanges must comply with current state regulations on the management and use of medicines, materials, and equipment. Strictly prohibit the use of funds from exchanges for purposes other than charitable medical services.

2\. Charitable healthcare facilities under the Vietnam Red Cross are exempt from state budget obligations for funds used for free medical services and enjoy financial incentives as prescribed in Circular No. 18/2000/TT-BTC dated March 1, 2000 of the Ministry of Finance for revenue from paid medical services.

3\. Charitable healthcare facilities under the Vietnam Red Cross must maintain separate accounting records for revenues and expenditures from partially subsidized medical services and services requested by the public.

- After covering all operating expenses and fully fulfilling fiscal obligations to the State budget (if applicable) as prescribed by law, the surplus from the difference between income and expenditure from the subsidy fund shall be allocated to establish a reward and welfare fund. The remaining amount shall be allocated to establish a development fund for the medical and healthcare activities of the institution to invest in upgrading facilities, purchasing equipment to improve the quality of medical services. The ratio for establishing these funds shall be determined by the head of the unit.

4/ Medical facilities providing humanitarian medical care under the Red Cross must maintain accounting records to monitor expenditures and implement financial reporting in accordance with Decision No. 12/2001/QD-BTC dated March 13, 2001, of the Minister of Finance on the accounting system applicable to non-state entities operating in education, health, culture, and sports sectors.

5/ Quarterly and annually, medical facilities providing humanitarian medical care are responsible for reporting their financial income and expenditure situation to the local Red Cross. They are subject to inspection and supervision by the Red Cross and the local finance authority.

C/ IMPLEMENTATION PROVISIONS

This Circular takes effect fifteen days from the date of issuance.

During implementation, if any issues arise, they should be promptly reported to the Ministry of Finance for appropriate amendments.