Key Words :
Administration, Procurement, Negotiation, Rate contract, Limited period enquiry.

INTRODUCTION
The fast developing Indian economy has placed before the hospital administration a tremendous challenge and responsibility. Good health economic practice is important to improve the allocation of resources, optimum utilization and identify cost effective technologies. Due to increasing specialization, changing technology and increased expectation of consumers and employees the hospital requires better co-ordination and organizational adaptability. The administrator’s expertise is that of an integrator, structuring the perceptions among staff and consumers, so that change can be effected without destroying organizational integration. Hospitals desire to update technology and competition among the health care organizations should always be weighed with the benefit to the organization and improvement in quality of care.