Financial Management in Healthcare

This project report explores the topic of managing financial resources in health and social care, with a specific focus on the Silloth Nursing and Residential Care Home organization. The report discusses various impacts and processes involved in making decisions regarding financial resources, highlighting the importance of equity excellence and motivating healthcare personnel to improve their services.

MANAGING FIN
RESOURCES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Principles of costing..............................................................................................................1
1.2 To manage financial resources .............................................................................................2
1.3 Regulatory requirement of financial resources.....................................................................2
1.4 Evaluate various system to manage financial resources.......................................................2
TASK 2............................................................................................................................................3
2.1 Diverse source of income available in health and social care...............................................3
2.2 Factors that may influence availability of financial resources..............................................3
2.3 Different type of budget expenditures...................................................................................4
2.4 Evaluate different approaches used at different level...........................................................4
TASK 3............................................................................................................................................5
3.1 How financial shortfalls can managed..................................................................................5
3.2 What steps would be taken....................................................................................................5
3.3 Budgets Monitoring in health and social care.......................................................................5
TASK 4............................................................................................................................................6
4.1 Information require to make financial decisions...................................................................6
4.2 Relationship between health care and expenditure...............................................................6
4.3 Impact of finance on individual health and social care.........................................................7
4.4 suggestion to improve health and social care services..........................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The project is all about managing financial resources related to health and social care. It
contains essay on financial management of Silloth Nursing and residential care home which is
independent regulator in England (Adams, Litan and Pomerleano, 2010). They are responsible
for providing safe,effective and high quality care to its patients. They also monitor and regulate
services to meet fundamental quality standards and safety to the people. Under his various
principle of costing are being used to explain organisation financial resources.
We have also identified different sources of financial available to the home care. By
using appropriate budget we have tried to review other approaches that help to promote effective
team at silloth nursing and Residential home. On the basis of the overall study about financial
aspects of health care we have identified various evaluation and suggestion to overcome various
issues. All reports are prepared with proper collection of information about managing financial
resource.
TASK 1
1.1 Principles of costing
Analysis of present condition against budget and forecasting , classification and coding,
job costing ,contracting costing, actual cost see to it and appointment. Costing may be describe
as terminology the methods and process of ascertaining cost (Aras, Aybars and Kutlu, 2010) .
The principle of costing are :
Stakeholder involvement : It is the process through which an organisation introduce people who
might be affected by the decision it makes or can be causing the execution of decision making.
Materiality : It is an accounting related with significance of transactions,balances and errors
those are exist in financial operations.
Consistency : For continuous techniques may require in organisation that can benefit them in
managing their resources.
Data accuracy : It is mostly depend on the quality of input data you are using in your costing
approaches .
Transparency : Transactions must be transparent and accountable by the company in managing
there financial statements.
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1.2 To manage financial resources
We have understand important role of planning in management of Health and Social care
budget as by monitoring budget expenditure. Such type of transparent and correct accounting
data , risk department,short and long term forecasts and auditing system are categorised as
important part of financial resources (Conway, 2013). The main objective of financial resources
are based on principles involve in the management. Aim of financial managers with an
understanding of various methods and techniques of accounting system that may coordinate
more accurately with understanding financial reports of company that are related to health and
social care. The support should be provided by the government to those organisation who are not
able to get survive because of lack financial assistance to them . The external and internal
sources of finance must be kept in mind while planning preparing health and social standard for
the people. Information must be needed in business to estimate costs, people income and external
influences.
1.3 Regulatory requirement of financial resources
As per the health and social care is concern we have to identified various sources of
finance that are available with the organisation to manage their daily business operations. Legal
regulation and practices ,audit ,accountability , various polices of government that are related to
managing finance all are basic requirements (Epstein and Buhovac, 2014). There are certain
other requirement like:
System : Source of income they are getting financial assistance, idea about how budget has been
set and most important thing is administration of budget controlled. Audit information : It
include business cost that are required while introducing plan for initial stages. It is also based on
people,equipment , availability of funds for business, building construction of health purpose and
consumable products used by the organisation for maintaining social standard. Income streams :
is associated with income of people that are used under the healthcare. And legal and external
trends involve in managing sources of the organisation.
1.4 Evaluate various system to manage financial resources
Under the this section we have targeted to evaluate various system that are involve in
managing financial resources of health and social care. It assume that resources are acquire and
used effectively in fulfilment of organisation goals. However, it focused on program and
responsibility point and it is a total encompasses of all aspects of organisations operations and
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mainly build environment where financial and accounting bases are prevail at the same time.
There are various system available with the organisation that they can use it in their operations
like, budgetary control system, cost control system,financial control system, internal control
audit and it control system (Farmer and et. al., 2012). All the above mentioned system may help
to provide proper idea about how we can manage our financial resources in health and social care
department. From this, budgetary control system is main for part of organisation that help to
forecast there financial statements in future time.
TASK 2
2.1 Diverse source of income available in health and social care
In health and social care aspect income is important thing is achieving the delivery of
better health care services to the public or any other person, and also for development and
growth of organisation project. NHS as example receive finance from government, there are
diverse of funding. Loan funding system has also being launched by government for consistence
growth in health and social care development. Public spending on health care is quite frequently
change by the population demand, resources available and at national priority. So , while
spending on health care has increased at averages of 3.7% on every year since NHS has created.
It has been observed that new method of accounting has make huge impact on health and social
care to find out available polices that would develop their standard. Total spending on health in
UK was 9.9% of total GDP.
2.2 Factors that may influence availability of financial resources
Organisation of health and social care was mostly depend upon the objectives and polices
that are varies with other government agency and organisations. Each organisation has various
patronage of service user and kind of services provider. As for examples, concern for mental
disorder patient, older or young patient. All these are categories under health issues as they
contribute to availability of finance(Hay, 2010) . Based on regulatory allocation and target in the
budget for present year we have to make certain adjustment to manage as per the require amount
of fund to fulfil social needs of people. Silloth Nursing and residential care home is personal
care for people who may not be able to live independently. Some home care from well-qualified
nurses or specialise in caring specific groups such as junior adults and acquisition disabilities.
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Geographical location of organisation might all effect diverse issues staff,funding that are
available in our areas (Remund, 2010).
2.3 Different type of budget expenditures
Budget is financial statement that is based on estimated outcome of cost, surplus,
resources amount, assets and liabilities for certain period of time. If the income is higher than
expenditure then budget can be of revenue. When it is less than expenditure is said to be deficit.
Budget help organisation like Silloth Nursing and residential care home to control, monitor their
resources to achieve budget target and objectives. However, organisation adopt budgeting system
that is curious in nature of business activities like in case of above mentioned organisation they
are using operational ,cash flows and capital budget to manage their financial resources.
Operational budget focused on every day financial operations of businesses. It is used to estimate
total expenses and surplus gain on monthly, weakly and annually that is taken as base of
forecasting . Projected income and expenditures are to be followed by organisation for managing
their healthcare problems.
2.4 Evaluate different approaches used at different level
The main objective of organisation is to attain desire investment outcome as return from
their financing a project plan. For this organisation has to conduct some analysis to evaluate
viability and profitability of those kind of projects. Silloth Nursing and residential care home will
considered some of following analysis in condition to take appropriate decision about their
expenditures. There are various techniques and approaches that are used by the organisation to
manage its team. Like cost benefit analysis,environmental analysis,adjusting strategies,
balancing activities and accountability etc. cost benefit is a process by which organisation can
able to evaluate its total expenditures that are incurred in a project. It also depend upon what
amount of return they are paying back and various risk associated with the project. Adjusting
strategies is play an important role to evaluate actual performance of funding to determine if any
set target is being meant, on expenses and profit return (Renz, 2016).
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TASK 3
3.1 How financial shortfalls can managed
An organization can adopt various impressive strategies and methods to manage their
financial issues or insufficiency which may affect the overall enterprise (Swayne,2012). In fact it
can be resolved with the help of various techniques such as :-
1. Acquired loans from external sources for example- loans from banks with fixed interest
rate, shareholders etc. to raise their company funds.
2. Use the reserve funds or capital which was gained by the enterprise by selling their fixed
assets or receiving payment from creditors.
Apart from this an organization need to ensure that there must be a proper control of the
budget deficit or shortfalls. In fact insufficient capital can also supplemented by central
government or financial bodies by providing additional allocation to improve their existing
scenario. Therefore a cited organization can easily buy all the essentials fund and operating
expenditures within their limited budget.
3.2 What steps would be taken
Financial institution can take various effective actions towards fraudulent activities with
the help of useful methods and techniques or by implementing research tools. In fact an
organization has to identify the truth as well as hidden problems by conducting investigation
programmes with the help of security bodies. After that masters of finance need to determine the
valid evidence or proof before reacting or taking any strict legal action behind fraudulent activity
or any misrepresentation's which may harm the policy of company. Apart from this an
organization also adopt some of the effective strategy to know about the culprit behind financial
fraud. Lastly central government have enacted many more acts and amended laws to solve all the
major issues related to the finance because capital is the backbone of every business as overall
work is depend on this only ( Duncan and Ginter, 2012).
3.3 Budgets Monitoring in health and social care
Effectively evaluating budgets help in handling and observation the budgets in several
ways which are important for health and social care.
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Personal budgets helps in holding clear information about what is involved, which also maintains
various information about risk and safety factors that helps in planning with relation to health
care. Knowledge of staff members is also important.
Budgets should be evaluated about the members who are performing different operations at
health and social care and effectively monitoring all the operations that are performed by the
workers.
Services are not kept with the changing needs and preferences of people which are included in
holding personal budgets. There can be various scopes for people who are having mental
problems so that budgets can be used in relation with different services of health and social care.
TASK 4
4.1 Information require to make financial decisions
Financial decision is one of the most critical decision for the health and care department
as money is an important resource. It is necessary that the management before taking any
decision regarding the investment of finance do the proper evaluation of different options
available with it. The cited company can take the use of profit and loss account as it provide the
total information about weather the existing financial investments are giving the adequate results
or not.
Also from the balance sheet the decisions regarding the future use of money can be done.
It gives the total of business assets and liabilities against each. These information will help in
knowing about the best resources of the company which are giving maximum returns to the
health and care department and also which all are the factors not giving the desired results can be
evaluated.
4.2 Relationship between health care and expenditure
The relation between health care service given and the expenditure is of vital importance
as it decides how much patient is charged against the services provided to him. The relation
between both is set in order to find weather the patient is charged fairly or not (Singer and et. al.,
2011). Money spent on different operations should be well communicated to the stakeholders so
that they can be provided with knowledge how the finance is being utilised.
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Transparency is one of the main factor that should be maintained in the monitory
activities as this shows that weather the expenditure is done maintaining the legal framework or
not. For effective utilisation of the financial resources bidding is done before buying any big
equipment so that the one is selected which gives maximum benefit to the businesses. This way
the total cost of the department is reduced and same can be utilised in other departments for their
development (Simonovic, 2012).
4.3 Impact of finance on individual health and social care
Based on financial and operational reviews of Silloth Nursing and residential care home.
A decision was made with targeting investment for a particular project. It also meant to focused
employee development, performance appraisal,monitoring and guidance by giving more
emphasis on HR planning. Like , recruitment and selection of right people at proper place in the
organisation. All above process will be able to reduce employee turnover, and planning to retain
them in organisation by motivating and capable staff to provide best care facilities.
But all these are directly or indirectly impact cost from lengthy selection procedure. They
will get more custom-made to centred person by interacting face to face. A research based on
health and social care gives a huge number of employee involvement that would generate real
benefit to them.
4.4 suggestion to improve health and social care services
In the above mentioned organisation we have understand the financial system and its
procedure that will help the organisations to make system more effective. According to ,,...,,he
has explained that financial system a compositions of internal relation among all financial
organization and their procedures (The impact of financial,2017). Like for examples,
shareholders,creditors,banks,accounting authority and cash flows and budget management
(Rockey and Collins, 2010). There are following ways to improve the quality in health and
social care are :
 Payment of outcome : under this heading transfer the risk and responsibilities from
government top health care helper. It also help to motivate healthcare persons to improve
their services to attain value for money.
 Equity excellence : It is equity for excellence was fundamental changes that are made in
national level in NHS, at the time it was created.
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CONCLUSION
The project report conclude the topic about managing financial resources in health and
social care. Under this we have explained Silloth Nursing and residential care home organisation
which is independent body that serve social care and motivate them to live and encourage them
to perform their task. It also contain various impact and process to make decision regarding
financial resources. Although it has major impact on employees as they are not able to make able
choice that to manage their financial resource for organisation.
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REFERENCES
Books and Journal
Adams, C., Litan, R and Pomerleano, M. eds., 2010.Managing Financial and Corporate
Distress: Lessons from Asia. Brookings Institution Press.
Aras, G., Aybars, A and Kutlu, O., 2010. Managing corporate performance: Investigating the
relationship between corporate social responsibility and financial performance in
emerging markets.International Journal of productivity and Performance
management.59(3). pp.229-254.
Conway, J.B., 2013.A course in functional analysis (Vol. 96). Springer Science & Business
Media.
Epstein, M.J and Buhovac, A.R., 2014. Making sustainability work: Best practices in managing
and measuring corporate social, environmental, and economic impacts. Berrett-Koehler
Publishers.
Farmer, J.D and et. al., 2012. A complex systems approach to constructing better models for
managing financial markets and the economy. The European Physical Journal Special
Topics.214(1). pp.295-324.
Hay, J., 2010. Too good to fail: Managing financial crisis through the moral economy of realty
TV.Journal of Communication Inquiry.34(4). pp.382-402.
Remund, D.L., 2010. Financial literacy explicated: The case for a clearer definition in an
increasingly complex economy.Journal of Consumer Affairs.44(2). pp.276-295.
Renz, D.O., 2016.The Jossey-Bass handbook of nonprofit leadership and management. John
Wiley & Sons.
Rockey, S.J and Collins, F.S., 2010. Managing financial conflict of interest in biomedical
research.JAMA.303(23). pp.2400-2402.
Simonovic, S.P., 2012.Managing water resources: methods and tools for a systems approach.
Routledge.
Singer, S.J and et. al., 2011. Defining and measuring integrated patient care: promoting the next
frontier in health care delivery. Medical Care Research and Review.68(1). pp.112-127.
Swayne, L.E., Duncan, W.J. and Ginter, P.M., 2012. Strategic management of health care
organizations. John Wiley & Sons.
Online
Theimpactoffinancial,2017[Online].Availablethrough:<http://www.sciencedirect.com/science/
article/pii/S0939362517300031>. [Accessed on 7th June 2017].
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