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Financial Resources In Health And Social Care

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Added on  2020-01-28

Financial Resources In Health And Social Care

   Added on 2020-01-28

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FINANCIAL RESOURCESIN HSC
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TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Principles of costing and business control systems...............................................................11.2 Information needed to manage the resources........................................................................21.3 Regulatory requirements for managing resources.................................................................4TASK 2............................................................................................................................................52.1 Diverse sources of income.....................................................................................................52.2 Factors influencing the availability of finance......................................................................62.3 Different types of budget expenditure...................................................................................7TASK 3............................................................................................................................................9TASK 4............................................................................................................................................91.4 Systems for managing financial resources............................................................................92.4 Evaluate the decisions about expenditure..............................................................................93.3 Budget monitoring arrangements........................................................................................104.1 Information needed for making financial decisions............................................................104.2 Analyse the relationship......................................................................................................114.3 Factors affecting the individual...........................................................................................114.4 Measures for improvement..................................................................................................12CONCLUSION..............................................................................................................................12References......................................................................................................................................13
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INTRODUCTIONFinancial resources play an important role in functioning of the business within healthand social care. Within this industry the services are centred on the people. However, for aneffective functioning of the operations it is essential that financial resources are to be managed inbest manner. The purpose of this report is to understand how systems are used to manage themonetary resources in health and social care centres. It will describe the role of planning in themanagement of budgets. It will also state how the budgets are monitored. At last, the report willend in suggesting measures for bringing improvements in these organizations. TASK 11.1 Principles of costing and business control systemsSt Patrick’s Nursing Home is a rehabilitation centre and health care institution for thepatients. The principles of costing and business control systems under the organization can bedescribed in the following manner:Costs - There are different types of costs used in the nursing home. Variable costs changes in direct proportion along with the change in output. For exampledirect material costs (Brandon and Welch, 2009)Fixed costs remains the same always as it does not change when output increases ordecreases. For example rent, rates etc.Semi-variable costs – It includes element of both variables as well as fixed costs. Forexample telephone expenses.Cost benefit Analysis–It includes identifying the benefits associated with a course ofaction and then cost related with the action is compared. The results of the technique aredisplayed in form of payback period ( Cortes, 2009). This period is regarded as the time, themethod takes for benefits to repay the costs. St Patrick’s Nursing Home can use it differentconditions i.e. in hiring new employees, analysing an investment proposal etc.Breakeven point - At this point within the business, company has no profit or no loss atthe given sales level. 1
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Figure 1: Example of Break Even Point(Source: Drake and Fabozzi, 2012)Forecasting –St Patrick’s Nursing Home can also make use of forecasting technique todetermine the direction of the future trends. It will help the financial managers in allocating theirbudgets for future course of period (Drake and Fabozzi, 2012). 1.2 Information needed to manage the resourcesThe financial resources within the nursing home can be managed on the basis offollowing information:Business Costs – Organization will need costing information related to people, finance,building, consumable items, administration etc. Different types of cost will identify thenature of expenses for the operations. It is important that St Patrick’s must create anappropriate cost structure for its operations (Sabău, 2013). Competition – Competition between the health and care institutions may reduce thecosts, improve the clinical outcomes and this will help the system in functioning moreefficiently. There is a high impact of competition factor on the cost and efficiency withinoperations. Development of health care facilities in higher number will lead to generationof many resources within the industry (Abraham, Deo and Irvine, 2008). Government policies – Government in UK wants that all NHS associated bodies shoulddeliver good financial results. There is a need to give patients more options and choices.2
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