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

This document discusses the budgeting process, financial statements, resource allocation methods, strategic workforce planning, and human resource policies in healthcare management.

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

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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

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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

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hospital is compensated by the government based on the number of patients they have
treated. It also helps in improving the value of investment for public funds since it helps in
promoting efficiency and sustainability. Activity based funding ensures that public resources
allocated to healthcare are used efficiently since the funding is based on a very consistent and
effective system.
Q3
Strategic workforce planning is all about organizing for hiring needs to be in line with
the overall strategy of the business. There are five steps involving in strategic workforce
planning. They include; Aligning the strategy of the business with the hiring needs of the
business (Klontz,Britt & Archuleta,(Eds.) 2014). It is critical for the clinic to align the short-
term and long term strategy of the business in order to know what are the hiring needs of the
business.
The second step is ascertaining that the talent needs and skills of the workforce are in
line with the needs of the business (Makover, 2016). The step also involves identifying and
making an inventory of skills and competencies that are needed to support the strategy. Some
of the factors analyzed in this case includes employee turnover and lack of employee
satisfaction. The third step is analyzing the supply of talent and comparing with the gaps that
exist in the current workforce(Makover et al. 2016). the management of the clinic has to
identify the gaps in human resource needs within the clinic. By doing this, the organization
can determine the staff that they need to hire in order to achieve the strategy. The fourth step
is developing a strategy for helping to acquire talent for the future and developing a tactical
plan for implementing workforce needs. The human resource department of the clinic should
work with different departments in the clinic in order to maximize the efficiency of the
workforce. The management also has to discuss the budget and market the positions to the
desired team.The fifth step is monitoring and implementation of the project. It is critical that

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the workforce plans put in place are evaluated from time to time in order to ensure that the
implementation is on course with the plan put in place.
Q4
Various policies and strategies are necessary for implementation of human resource
policies. It is important to review human resource policies from time to time in order to
ensure that they are inline with the long time and short time policies of the organization. One
of the major areas of human resource review is satisfaction of the workforce. It is highly
critical to ensure that the people working in a healthcare organization is highly satisfied in
order to ensure that patients receive optimum care (Burns,Bellows,Eigenseher &
Gallivan,2014). It is critical for an organization to review the recruiting and staffing aspect of
the business. The HR professions within an organization have to develop an action plan for
hiring of a diverse workforce to contribute towards the objectives of the organization. It is
vital that an healthcare organization recruits highly trained and experienced individuals. This
is because the staff working in the hospital are a huge determinant in achieving the
organizational goals and objectives.The HR department also has to review the relations
between the employees and the senior management of the clinic.The strategy and the policy
of human resource also has to focus on training and development of employees employees in
order to improve service delivery to patients visiting the clinic (Myerson & Bichard, 2016).
The human resource department needs to come up with program to train employees in
different department as well as offer them support to advance their careers. 0The human
resource review has to focus on human resource information systems and payroll. The
department should continuously review the needs of the organization regards to the payroll
and need for upgrade of human resource management systems.Having highly efficient
information systems is very critical in management of the workforce within a health

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organization. The systems helps in ensuring that the needs of the workers are addressed
promptly and that the employees are on time.
References
Acharya, B., Maru, D., Schwarz, R., Citrin, D., Tenpa, J., Hirachan, S., ... & Kohrt, B.
(2017). Partnerships in mental healthcare service delivery in low-resource settings:
developing an innovative network in rural Nepal. Globalization and health, 13(1), 2.
Archuleta, K. L., Burr, E. A., Bell Carlson, M., Ingram, J., Irwin Kruger, L., Grable, J., &
Ford, M. (2015). Solution focused financial therapy: A brief report of a pilot study.
Journal of financial Therapy, 6(1), 2.
Burns, K. K., Bellows, M., Eigenseher, C., & Gallivan, J. (2014). ‘Practical’resources to
support patient and family engagement in healthcare decisions: a scoping review.
BMC health services research, 14(1), 175.
Cummings, N. A. (2016). 6 Arguments for the Financial Efficacy of Psychological Services
in Healthcare Settings. In Psyche's Prophet (pp. 86-102). Routledge.
Groves, P., Kayyali, B., Knott, D., & Kuiken, S. V. (2016). The'big data'revolution in
healthcare: Accelerating value and innovation.
Klontz, B. T., Britt, S. L., & Archuleta, K. L. (Eds.). (2014). Financial therapy: Theory,
research, and practice. Springer.
Makover, R. B. (2016). Treatment Planning for Psychotherapists: A Practical Guide to
Better Outcomes. American Psychiatric Pub.
Myerson, J., & Bichard, J. A. (2016). New demographics new workspace: Office design for
the changing workforce. Routledge.
Runciman, B., Merry, A., & Walton, M. (2017). Safety and ethics in healthcare: a guide to
getting it right. CRC Press.

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