Contemporary Health Management: Budgeting, Resource Allocation, Workforce Planning and HR Policies

Running head: CONTEMPORARY HEALTH MANAGEMENT 1
CONTEMPORARY HEALTH MANAGEMENT
Name of Student
Institution Affiliation

CONTEMPORARY HEALTH MANAGEMENT 2
CONTEMPORARY HEALTH MANAGEMENT
Q1.
There are seven steps in the budgeting process of a physiotherapy clinic. The first step
in the process is the step of setting realistic goals(Cummings,2016). At this step, it is
important to set the financial goals of the physiotherapy clinic after a specific period of time.
The next step in this process is to identify the income and expenses of the business(Cumming
et al.2016). Some of the expenses for the clinic include salaries and expenses, rent expense,
licenses and permits as well as micselinius expenses. The main income stream for the clinic is
the fees charged to the patients. The third step in this process is separating the needs and
wants of the clinic. During the budgeting process, it is important to identify the things that are
a basic necessity and those that are not so important. The fourth step is designing the
budgeting while making sure that we spend what is available and affordable. This can be
done using the easy to use budget calculator. The fifth step is matching spending to the
timing of the income in order to ensure that the business runs smoothly. The sixth step in the
budgeting process for the clinic is to budget for seasonal and unexpected expenses. The final
step in the process is making adjustments to accommodate omissions that may have
committed in the process of preparing the budget.
Financial information is recorded in various types of accounts. One of the types of
financial statements that will be used at the clinic is the income statements. The income
statement records the financial performance of a business for a particular period of
time(Burns et al. 2014). Some of the information recommended in the financial statements
include sales, expenses as well as net profit and loss.
The other account that will be crucial is the balance sheet. The balance sheet records
the financial position of a business as at a particular date. The information contained in this
account include; assets, liabilities and equity. Statements of cash flows will also be used in

CONTEMPORARY HEALTH MANAGEMENT 3
recording information such as cash inflows and outflows of the clinic. These cash flows are
divided into three classes and they include operating activities, investing activities and
financing activities(Acharya et al. 2017). Statement of changes in equity is the other account
which will be needed in for recording financial information at the clinic. It will contain
information such as issuance and purchase of shares, dividends as well as profits and loss of
the business.
Q2.
There is great scarcity of resources in healthcare and hence it is very critical for the
people in carge of managing the healthcare organization to manage resources prudently
(Archuleta et al 2015). There are several methods used in allocating resources in healthcare
sector.one of this methods is population based funding. This is the funding method where
resources of healthcare are allocated based on the population of a particular region. General
tax funding is a method where healthcare is funded using direct and indirect tax collected by
the government. The other method of health funding is hypothetical tax. This method is based
on an insurance scheme where a person pays for healthcare based on their income. The other
method of funding healthcare is where a user pays money out of their pocket
(Groves,Kayyali,Knott & Kuiken, 2016).In this category, there are some patients who
contribute a portion of the cost of healthcare while others contribute the entire amount.
Private medical Insurance is another method of health funding which is highly popular.
Activity based funding has become very popular of late. This is a funding method
where hospitals get paid for the number as well as mix of patients that they treat (Runciman,
Merry & Walton, 2017). A hospital that treats more patients receives more funding. ABF
funding has become increasingly popular because it has enabled timely access to quality
healthcare services.People trying to access healthcare are able to get the services easily since
the funding method is rather simple and there are not many technicalities involved. The