Financial Control in Health and Social Care: A Critical Analysis of Legal, Regulatory, and Fiscal Environment

Assessment Type
Portfolio of Tasks

Contents
INTRODUCTION......................................................................................................................4
TASK 1......................................................................................................................................4
a) Analyse critically the legal, regulatory and fiscal environment of health and social care.4
b) Evaluate critically the utilisation of funding options in the health and social care sector.5
c) In the framework of budgeting, elaborate the agency theory in the context of the NHS
and major ways of interacting with stakeholders...................................................................6
TASK 2......................................................................................................................................6
a) Discuss critically the impact of financial limitations, expenses, and budgets have a
significant impact on health and social sector managers.......................................................6
b) Explain the challenges of budgeting in the public sector organisations............................8
c) Determine the pros and cons of incremental and zero based budgeting............................9
TASK 3....................................................................................................................................12
a) Compute the breakeven point and safety margin for the years 2018 and 2019...............12
b) Discuss the assumption that can be taken in the breakeven model by pointing out the
reality of today’s business environment...............................................................................15
CONCLUSION........................................................................................................................15
REFERENCES.........................................................................................................................16

INTRODUCTION
Financial control is a process which involves policies, methods and procedures that
are sued by the organisation to keep a control on financial services. Every organisation is a
have limited resources and every resources have various uses. Budget helps in estimating the
revenue that the organisation will earn and expenses to be incurred during the year (Ayoobi
and et.al., 2021). The following report is divided into three parts. That includes financial,
legal and regulatory framework of social care and health. There are many options for
business funding such as Private Finance Initiatives (PFI), competitive, partnership,
outsourcing and tendering with respect to health care and social factors. A brief summary of
the agency theory is also included, which would be an agreement between one or more
people to execute services on behalf of a person. The public sector is confronted with a
number of budgeting issues. Budgeting can be done in a variety of ways, including zero-
based budgeting and incremental budgeting. The pros and downsides of zero-based and
incremental budgeting are discussed. Task three entails calculating the breakeven point and
margin of safety for the previous two years. At the end, different assumptions connected to
the breakeven model are included.
TASK 1
a) Analyse critically the legal, regulatory and fiscal environment of health and social care.
The services offered by the Ministry of Health in the United Kingdom are referred to
as health and social care. The legal environment is a set of written documents that comprises
the laws, laws and regulations, guidelines, and agreements in every economy. The financial
framework consists of rules and strategies for the fiscal reporting of a specific industry or
sector. The regulatory environment is concerned with the firm's legal framework as a whole.
The numerous frameworks in the area of health and social care can be elaborated as follows:
Legal environment of health and social care:
The Care Act of 2014 is the law that governs social care. There are several additional
legislations that come before this one, such as the National Assistance Act, 1948 and the
NHS Community Act, 1990. The nine acts were consolidated into a single statute known as
the Care Act, 2014. The care act has several functions, which can be summarised as follows:
 It ensures that people receive services before their care needs become critical, or it
allows them to postpone their demands (Budding, Faber and Vosselman, 2019).
 It aids in the gathering of information necessary to make critical choices about help
and treatment.
 It also offers a variety of high-quality and cost-effective services to choose from.

The provision of healthcare is a national responsibility, but social care is a local
responsibility. During the year 2015, the term social care 'percept' was established. It gives
local governments the capacity to boost the council tax by a certain amount. The HRA as
well as the four UK health authorities have created a framework. It's used in the United
Kingdom, Northern Ireland, Scotland, and Wales. The Care Act of 2014, section 111(6) and
(7), comprises all legal prerequisites and encourages the conduct of research.
The regulatory framework for the health and social care industry is as follows:
In order to comply with the rules of the health sector, a number of principles must be
observed. The health and facilities operations are overseen by a number of organisations
(Cagan, 2018). The following is a summary of the regulatory framework in the health and
social care sector:
 The United States Environmental Protection Agency (EPA) is responsible for
protecting the environment from different dangerous chemicals. RCRA, CWA, CAA
(clean air act), and FIFRA (Federal Insecticide, Fungicide, and Rodenticide Act) are
some of the integrated acts.
 The Joint Commission on Accreditation of Healthcare Organizations (JCAHO) is a
non-profit organisation that accredits It is primarily concerned with the patient's
health and safety.
Health and social care financial framework:
 The allocation, procurement, and use of monetary components of the health system
are all part of the funding of health and social care.
 WHO meets the financial needs of the health and social care sectors by providing
essential funds for all services.
b) Evaluate critically the utilisation of funding options in the health and social care sector.
To operate the system, every company needs money. Similarly, the healthcare professional
takes resources from a variety of sources. Other than the finances it already has; other
funding choices are extra sources or means of obtaining funds (Chapman, 2018). There are a
variety of funding alternatives, which can be summarised as follows:
 Private finance Institutions: These are organisations that are not government-owned or
regulated. The ownership of the shares is not allocated among the several authorities.
Credit availability, mitigating risk, and financial data accuracy are the primary
functions of these commercial institutions. Pershing Square Holdings, RSA Insurance,