Net Asset Management Article 62 Net assets refer to the balance of a hospital’s assets minus liabilities.

Including business funds, special funds, funds to be offset, fiscal subsidy carryover (excess), science and education project carryover (excess), and uncompensated losses.

(1) Business funds, which are the net assets used by the hospital for business development in accordance with regulations.

Including funds transferred in from the balance allocation (excluding basic fiscal expenditure subsidies carried forward), funds transferred in after the balance of non-fiscal special funds is lifted, etc.

The utility fund is used to make up for losses in accordance with regulations. The maximum limit for making up for losses is the net value of fixed assets, intangible assets and other assets formed by deducting hospital non-financial subsidy funds and science and education project funds from the utility fund.

Hospitals should strengthen the management of business funds, make overall arrangements, and use them rationally.

For hospitals with large rollovers of utility funds, a certain amount of utility funds should be allocated when preparing annual budgets.

(2) Special fund, that is, the hospital sets up and withdraws net assets for special purposes in accordance with regulations.

It mainly includes employee welfare funds, medical risk funds, etc.

Employee welfare funds refer to funds withdrawn based on a certain proportion of business revenue and expenditure balances (excluding basic fiscal expenditure subsidies carried forward) and used exclusively for employee collective welfare facilities and collective welfare benefits.

Medical risk funds refer to funds accrued from medical expenditures and used exclusively to pay for the expenditures incurred by hospitals in purchasing medical risk insurance or for actual compensation for medical accidents.

The cumulative proportion of medical risk funds withdrawn by the hospital should not exceed 1‰-3‰ of the current year's medical revenue.

The specific proportion can be formulated by the financial department of each province (autonomous region, municipality directly under the Central Government) in conjunction with the competent department (or organizing unit) according to the actual local conditions.

Hospitals should strengthen the management of employee welfare funds and medical risk funds, make overall arrangements, and use them rationally.

For hospitals with large rollovers of employee welfare funds and medical risk funds, the withdrawal ratio can be appropriately reduced or the withdrawals can be suspended.

Other special funds refer to other special funds withdrawn and set up in accordance with relevant regulations.

If the state has unified regulations on the withdrawal ratio and management methods of various funds, they shall be implemented in accordance with the unified regulations; if there are no unified regulations, they shall be determined by the provincial (autonomous region, municipality) competent department (or sponsoring unit) in conjunction with the financial department at the same level.

Special funds must be earmarked for specific purposes and cannot be used without authorization.

(3) Fund to be offset, that is, the net value of capital expenditures formed from fiscal subsidy revenue and science and education project revenue.

(4) Financial subsidy carryover (remainder), that is, the limited-purpose financial subsidy carryover (remainder) funds rolled over by the hospital over the years, including the basic expenditure carryover (remainder) transferred from the business revenue and expenditure balance and the project expenditure carryover (remainder)

.

(5) Science and education project carryover (remainder), that is, the hospital’s accumulated science and education project income from science and education projects that have not yet been completed minus the accumulated expenditure incurred, and the carryover funds that are reserved for future use according to the original purpose, as well as the hospital’s completed but not yet completed projects

The remaining funds for scientific research and teaching projects that have been lifted from restrictions.

(6) Uncovered losses, that is, losses that are not covered by the business funds.