CONTEMPORARY HEALTH MANAGEMENT.

Running head: CONTEMPORARY HEALTH MANAGEMENT
CONTEMPORARY HEALTH MANAGEMENT
Name of the Student
Name of the University
Author Note

1CONTEMPORARY HEALTH MANAGEMENT
Q1. The financial planning of the physiotherapy clinic would be comprised of the several steps
of the budgeting process. The steps include planning, goal setting, and determining income,
controlling and recording and realistic.
Financial planning
The budgeting of the physiotherapy clinic would require the assessment of the asset and
the workforce. Other than these the influential factors of the expenditure and income including
salary and wages of employees, award based allowances, payroll tax, government taxation
process, hour based wage for the employees, equipment cost, medical officer or supervisor cost
and other essential costs as well should be considered (Van Den Besselaar, Heyman &
Sandström, 2017). The factor of the budgeting would be developed based on the health
workforce wages regulation set by Australian Department of Health. Thus it can be stated that
the realistic prediction of the budget that is the income and the expenditure ratio calculation
should be considered for the financial planning of the physiotherapy clinic development (Grossi,
Reichard & Ruggiero, 2016).Theft risk assessment would be incorporated in the budgeting
process as well as the insurance planning as it is an important factor that refers to the aspect of
the continuous change in the health financing sector. For example possible cost for the
equipment would be higher than 5000 AUD and per day health care staff cost would be 200
AUD and the possible income can be 30,000 to 50,000 AUD per month.
Types of accounts
Here the accounting type would be used for the record of the financial information include
asset, liability, owner’s equity, revenues and expenses.
Asset: It refers to the financial and other resources owned by the business that is the property of
the owner. This resource can be used for producing a positive economy.
Liability: It refers to the legal and financial debts if the organisation for the business operation
and also producing positive economy.

2CONTEMPORARY HEALTH MANAGEMENT
Owner’s equity: It refers to the subtracted value of the asset and the liability of the owner of the
organisation.
Revenue: It refers to the income produced by the service providence by an organisation.
Expenses: It refers to the payments of the organisation to the employees, suppliers, leases and
others as well.
The financial information would be recorded to all these accounting types, and the
accounting process would be recorded by the ledger maintenance (Zhao & Huang, 2016).
Q2. There is a different kind of approaches for resource funding for the health system in
Australia. However, activity-based funding and block funding is the most popular one in the
system. The process of funding for the system of health care in Australia is governed by the
National Health Funding Body and National Health Funding Pool
(Publichospitalfunding.gov.au., 2019).
Resource funding in healthcare
Block funding: It refers to a grant provided by the government to the specific process or project
with specific guidelines for the use of the granted money. It is also used for different scenarios,
such as the payment of the suppliers and other aspects as well. Based on the comprising of
various elements in the health care system that require the factor of both types of the funding
process, however, the activity-based funding is more effective in this process (Van Den
Besselaar, Heyman & Sandström, 2017).
Activity-based funding: It refers to the funding process, which dependent on the mixed number
of patients a hospital is treating. Thus it can be seen that the operation of the funding in the
health care system of Australia is dependent on the activity-based funding as the case-mix
procedure for the evaluation of the cases of the patients (Toloo et al., 2018).
Causes of popularity of the activity-based funding process: