Health Financial Management

Running Head: HEALTH FINANCIAL MANAGEMENT
Health Financial Management
Name of the Student:
Name of the University:
Author Note:

HEALTH FINANCIAL MANAGEMENT1
Response to Question 1:
Answer: Health financing is considered as the basic tool which not only acts as a key
determinant of health system performance with respect to equity, health outcomes as well as
efficiency, but also plays a crucial role by ensuring universal health coverage. Revenue is
considered as the source through which the money is raised from households, external sources
and business. Health expenditure is classified under three heads – public expenditure, private
expenditure and out of pocket systems expenditure, out of which, according to WHO, almost
80% of the health expenditure is derived from private source. Health expenditure is considered
as the total amount that is being spent by individuals, groups, public or private organizations for
the purpose of total health care operations and its various components (Wiley, 2014). These
amounts which are being spent may be equivalent to the actual cost or may not be shared among
the insurers, patients, and employers of the particular organization.
Response to Question 2:
Answer: According to the NSW Health system in Australia, hospitals remain the main focus of
debate and receive huge funding from the government where the major area of importance for
the health care department is made by the state, federal and local government bodies where they
act as funders, and policy developers which includes the function of regulators and service
deliverers. (Mitrione, Tanewski & Birt, 2014). Funding in the Australian health system is a
combination of government funding which includes the state government and the federal
government, along with private health insurance. The funding method of the government is
through Medicare schemes which subsidize funds free universal access to hospital treatment
considering the particular systems that are out of medical treatment standards. It is important to