Financial Management in Healthcare

Financial Management in Healthcare
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Table of Contents
1. Introduction.........................................................................................................................................2
2. Discussion Forum 1..............................................................................................................................2
3. Discussion Forum 2..............................................................................................................................4
4. Discussion Forum 3..............................................................................................................................4
5. Discussion Forum 4..............................................................................................................................6
6. References APA...................................................................................................................................9
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1. Introduction
The chosen Healthcare organisation for this report is Bupa in Australia. In Australia this
institution provide with aged care, health services, Health Insurance and Dental as well as optical
care. The key product of this institution is Health Insurance.
2. Discussion Forum 1
It is not a public institution rather it is a private organisation, an MNC which operates through its
subsidiaries. It provides with health insurance and medical subscription items. The institution
gives workplace health, long run condition management services, health evaluation and coaching
services, nursing, tele-care services, residential nursing, medical assistance and home healthcare
goods and services. It serves individuals, corporate customers and small businesses. It has
operations in New Zealand, United Kingdom, Australia, Latin America, Spain and rest of
Europe. Considering the financial performance of the organisation, the figures of the
organisation are shown in £ because the financial reports for the business are created in ‘£’ as it
is a subsidiary and the head office is situated in United Kingdom. In the year 2017 Australia and
New Zealand were able to provide with great performance even though the economy had been
challenging (theconversation.com, 2018). The revenue had been of £4926.6m that is
improvement of 4% as it had been £4730m in the previous year 2016. The underlying profits
improved by 3% as those had been £375.1m in 2016 which increased to £384.7m in 2017. Even
though there was a huge drop in the number of Australian residents covered by Private Health
Insurance, the customers increased in numbers by 1% and therefore the business observed great
growth in the overall insurance sales. In this year, the Australian government extended the Bupa
medical Visa services contract for providing medical assessment to visa applicants for next 2
years because of the quality care provided to the customers (Bupa.com, 2018).
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The key costs for the organisation involved billing cost, advertising, marketing, sales,
underwriting, purchasing and transferring resources, processing of claim form, negotiating with
help providers, staff cost, care coordination, executive management, Accounting, auditing cost,
reporting cost, budgeting, reimbursing patients are making payments to providers, managing
accreditations, payment to reserves, taxes and commissions. Even though there is not clear
guidance by NHS on how the reserve payments, taxes, commission, bills and profits are to be
captured still they are to be part of the administrative costs.
Just looking at the Australian and New Zealand report, the average number of full-time
equivalent employees involving executive directors was 13,287 in 2016 and 13,227 in 2017. The
historical cost of investment properties calculated by the business health solutions that Australia
and New Zealand head discount rate of 9.5 %, vacancy period of 3 months, capital growth rate of
2.6%, turnover in apartment and villas was for 4 to 7 years and provision for capital replacement
had been 0.4%. Different care homes, retirement villages and freehold land in Australia and New
Zealand care services businesses for reclassified as held for sale on 31st December 2017 with
particular related assets and liabilities as there had been plans going on to sell. That was
immediate revaluation of freehold land and buildings and investment priority before transferring
to help for sale. Looking at the previous years, the revenues have been improving from past 5
years that is in 2013 it was £3791.8m, £3759.6m in 2014, £3648.4m in 2015 and £4360.6m in
2016 with a huge increase in 2017 that is of £4926.6m. Even though the revenue had been
declining from the year 2013 to 2015 however in 2016 and 2017 there has been improvement.
3. Discussion Forum 2
For such a case, it is important to evaluate the significant factor on deciding the best approach
that is the scope of evaluation and budget. The first thing to be answered is "will the
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