Analyzing Financial and Budgeting Implications on Health Management

This report examines the financial and budgeting implications on performance improvement and management within health and social care organizations. It highlights the importance of financial planning and capital budgeting, emphasizing that effective financial management is crucial for achieving organizational objectives and enhancing overall performance. The report identifies key operations involved in financial management, including assessment, long-term investment decisions, financing, working capital management, and risk management. It also discusses the significance of budgeting, differentiating between operational and capital budgeting, and introducing the concept of rolling projections for adapting to the dynamic healthcare environment. The analysis concludes that a well-structured financial management and budgeting process is essential for healthcare leaders to prioritize and achieve efficiency and effectiveness in delivering quality care. Desklib provides access to similar solved assignments and resources for students.

The Financial and Budgeting
Implication in Performance
Improvement and Management
in health and Social Care

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................4
Conclusion.......................................................................................................................................6
References........................................................................................................................................7
Books & Journals .......................................................................................................................7

Introduction
Health and social care organization are considered as the one of the most effective and required
sector fro any economy of the world. These are basically those organization that helps in
providing the healthcare support to the masses. They play an important role in delivering well
being services at a lower prices. In context to the report, the study on the financial and the
budgeting implication on the performance improvements along with the management of health
and social care is done. This will help in understanding the importance of financial and the
budgeting connotations.

Main Body
Health and social care has been considered as one of the sectors around all the global countries
that will be required for the long time period on the basis of the future perspective. In context to
this respective sector of heath and social care organization it is high;y important to consider the
components of the financial planning and capital budgeting (Xerri and Reid, S, 2018). The
capital budgeting process in the sector of health and social care, has always been complicated
which have led the various organizations to realize and understand the element of the financial
recovery. It is highly important for these organization to understand the importance of the
financial planning and the process of the capital budgeting mainly in context to the health and
social care organization.
The financial management in the health and social care organization plays an important
role in managing the funds and the risks that assists in attaining the financial objectives in a very
effective and efficient way. It is considered that when the healthcare organizations are having a
strongly establishes financial management with respective organized plans, the health and the
social care operation can be executed in a more effective and efficient manner. In order to
enhance the performance of such kind of business organization, financial management is playing
an important role (Copeland and Daly, 2018). The basic operations that are involved in the
financial management in healthcare and social care organizations include assessment and
preparation, decisions related to long-term investment, financing decisions, working capital
management, financial risk management and contract management. For running the operations of
the health and social care organization, financing is considered as the most important component.
This will help in enhancing the reach considerably. With the dynamic changes that this particular
healthcare industry is facing, have led to many financial transformational changing affecting the
financial position in a certain manner. The financial management in the health and social care
organization requires exceptional and proficiency skills. Therefore, it helps in improving the
performance of the concerned organisation considerably.
Majorly, when the budget in healthcare is concerned, it is related to the estimation of all
the incomes and expenditures over a period of time. With the help of budgeting process in the
healthcare organization, it helps in ascertaining the amount of funds that are required to deal with
the operational cots and the capital equipments (Knight, Wessel and Markle, 2018). While
processing the budget of a health and social care organization, various components must be taken

care of namely volume growth assumptions, feedback and many more. It is considered that an
effectively planned budget helps in allowing the system of health and social care organization to
appropriately plan for the for the future occurrences in order to provide a quality care. In case of
the this respective sector there can be majorly two types of budgeting that can be utilized for the
specific healthcare purpose:
 Operational Budgeting: In context to a health and social care business organization, it is
highly significant to ascertain the funds for the purpose of the processing the staffing and
training. It has been seen that the staffing involves huge amount of costs in context to
business operations of the healthcare organization (Amrita, Garg and Singh, 2018). The
major objective of operational budget is to allow hospitals effectively monitor and
balance the revenues and expenses.
 Capital Budgeting: In a healthcare organization funds are also required for the
procurement of the goods namely equipments, beds, infrastructure etc. the capital budget
of the hospital can have a direct impact on the improvement and the management of the
health and social care system ability so that better care can be provided to more patients.
This helps in establishing a strategic vision for the respective organisation to achieve a
higher level of efficiency in the long run.
 Rolling Projection: In the health and social care organization, it is basically a process
performed by the leaders to modify the financial forecasting on a monthly or quarterly
basis depending on the respective situations.
The fields of health and social rare is changing rapidly because of the dynamic environment
which lays a major focus on adaptability element to deal with the changes. A strong and well
built healthcare financial management and budgeting process so that the concerned leaders can
plan and establish the priorities in this field (Henman, 2019). It is considered that the financial
and budgeting implications is considered as an important tool that helps in allocating the capital
among the various departments and the projects.

Conclusion
From the above report it can be concluded that it is important to understanding the importance of
financial and the budgeting connotations in the sector of health and social care organization. The
major learning out of the report was it helps in improving the performance as well the
management of the health and social care organization. It has also been analysed that a strong
and well built healthcare financial management and budgeting process helps the leaders to plan
and establish the priorities in this field so that they can achieve higher amount of efficiency and
effective.

References
Books & Journals
Xerri, M. J. and Reid, S. R., 2018. Human resources and innovative behaviour: Improving
nursing performance. International Journal of Innovation Management, 22(02).
p.1850019.
Copeland, P. and Daly, M., 2018. The European Semester and EU social policy. JCMS: Journal
of Common Market Studies, 56(5). pp.1001-1018.
Knight, W., Wessel, R. D. and Markle, L., 2018. Persistence to graduation for students with
disabilities: Implications for performance-based outcomes. Journal of College Student
Retention: Research, Theory & Practice, 19(4). pp.362-380.
Amrita, K., Garg, C. P. and Singh, S., 2018. Modelling the critical success factors of women
entrepreneurship using fuzzy AHP framework. Journal of Entrepreneurship in
Emerging Economies.
Henman, P., 2019. Of algorithms, apps and advice: Digital social policy and service delivery.
Journal of Asian Public Policy, 12(1). pp.71-89.
(Xerri and Reid, S, 2018)(Copeland and Daly, 2018)(Knight, Wessel and Markle, 2018)(Amrita,
Garg and Singh, 2018)(Henman, 2019)